[Comments on EEOC Payment of Local Property Tax]

B-247058: Published: May 20, 1992. Publicly Released: May 20, 1992.

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GAO commented on whether the Equal Employment Opportunity Commission (EEOC) should pay the District of Columbia personal property tax assessed against a firm and its assignee on furniture which EEOC was leasing from the firm under the Federal Supply Schedule. GAO noted that: (1) the tax was not a direct tax on the government and EEOC was not constitutionally immune from the economic burden of the personal property tax, since under provisions of the Federal Supply Schedule it obligated itself to pay the amount of the tax on the invoiced furniture; and (2) the only exception to payment would be if EEOC and the firm excluded EEOC from paying the tax under the terms of the rental agreement.

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