Tax Type
Retail Sales and Use Tax
Description
Purchases by federal agency
Topic
Exemptions
Date Issued
07-13-1984
July 13, 1984
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of June 19, 1984, in which you submit a request for a ruling on the applicability of the sales and use tax to the *****.
Under Federal law at **** U.S.C.A. ** the ***** is "exempt from any taxes or other fees imposed by any State... which are levied on the Corporation or any subsidiary thereof." Therefore, ***** may purchase any item of tangible personal property, including meals, exclusive of the sales and use tax. In addition, ***** may pay for the rental of hotel and motel accommodations exclusive of the sales and use tax. Lastly, services are generally not subject to the tax but ***** is entitled to an exemption on taxable tangible personal property, such as printed matter, produced as the result of services. This letter may be provided to suppliers and others with whom business is transacted as authorization to make tax exempt purchases.
I must caution though that purchases of meals, lodging, and other items must be paid for out of ***** funds in order for the exemption to be obtained. This requirement is not met when an ***** employee pays for meals, lodging, or tangible personal property out of his own funds, even though he may be reimbursed by ***** or when such charges are paid out of a cash travel advance from ***** inasmuch as the employee may commingle his own funds with government funds. This requirement is satisfied when ***** is billed directly or when an employee uses an credit card or check to pay for meals, lodging, etc.
Please contact us if you have any questions.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner