B-128043, JUN. 11, 1963

B-128043: Jun 11, 1963

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THE DESIRABILITY OF UNIFORMITY IN THE WITHHOLDING REQUIREMENTS AND PROCEDURES OF THE VARIOUS STATE AND LOCAL JURISDICTIONS UTILIZING WITHHOLDING AS A MEANS OF COLLECTING INCOME TAXES IS OBVIOUS AND NEEDS NO FURTHER ELABORATION. WE UNDERSTAND THAT THESE PROCEDURES ARE NOW IN USE IN SOME STATES.

B-128043, JUN. 11, 1963

TO THE DIRECTOR, BUREAU OF THE BUDGET:

BY LETTER OF APRIL 22, 1963, THE EXECUTIVE ASSISTANT DIRECTOR, BUREAU OF THE BUDGET, TRANSMITTED A COPY OF A LETTER DATED APRIL 15, 1963, FROM THE GENERAL SERVICES ADMINISTRATION PRESENTING TWO PROPOSALS FOR CONSIDERATION BY THE COUNCIL OF STATE GOVERNMENTS, AND REQUESTS OUR COMMENTS THEREON.

THE GENERAL SERVICES ADMINISTRATION CITES THE LARGE NUMBER OF TAX EXEMPTION CERTIFICATES WHICH IT MUST PREPARE IN ORDER TO AVOID PAYMENT OF STATE GASOLINE TAXES IN THE VARIOUS STATES REQUIRING SUCH CERTIFICATES. IT FURTHER POINTS OUT THAT SOME STATES DO NOT REQUIRE SUCH CERTIFICATES, RELYING ON AUDIT OF SALES DOCUMENTS TO IDENTIFY TAX EXEMPT SALES TO FEDERAL AGENCIES. THE ELIMINATION OF THE REQUIREMENT FOR SUCH CERTIFICATES WOULD SUBSTANTIALLY LESSEN THE ADMINISTRATIVE BURDEN ON FEDERAL AGENCIES AS WELL AS ON THE DISTRIBUTORS OF PETROLEUM PRODUCTS. HENCE, THE GSA SUGGESTED THAT THOSE STATES REQUIRING TAX EXEMPTION CERTIFICATES REVIEW THEIR NEED FOR THESE FORMS. WE SUPPORT THIS SUGGESTION AND RECOMMEND THAT IT BE FORWARDED TO THE COUNCIL OF STATE GOVERNMENTS FOR CONSIDERATION.

THE GSA ALSO REFERS TO THE BURDEN PLACED ON FEDERAL AGENCIES BY THE MULTIPLICITY OF PROCEDURES CAUSED BY THE DIFFERENT REQUIREMENTS OF THE VARIOUS STATES HAVING WITHHOLDING PLANS FOR COLLECTION OF STATE INCOME TAXES, AND THE BENEFITS WHICH WOULD ACCRUE FROM UNIFORMITY OF SUCH REQUIREMENTS. THE GSA SUGGESTS THAT ALL STATES REQUIRING INCOME TAX WITHHOLDING UNIFORMLY PROVIDE THE OPTION OF CALCULATING WITHHOLDING AMOUNTS AS A SIMPLE PERCENTAGE OF THE AMOUNTS WITHHELD FOR FEDERAL INCOME TAX, THE PERCENTAGE TO BE SPECIFIED BY EACH STATE.

THE DESIRABILITY OF UNIFORMITY IN THE WITHHOLDING REQUIREMENTS AND PROCEDURES OF THE VARIOUS STATE AND LOCAL JURISDICTIONS UTILIZING WITHHOLDING AS A MEANS OF COLLECTING INCOME TAXES IS OBVIOUS AND NEEDS NO FURTHER ELABORATION. SUCH UNIFORMITY WOULD BE BENEFICIAL NOT ONLY TO THE FEDERAL GOVERNMENT BUT TO ALL EMPLOYERS DOING BUSINESS IN MORE THAN ONE SUCH JURISDICTION. HOWEVER, THERE MAY BE OTHER MORE SUITABLE METHODS OF ACHIEVING UNIFORMITY AND SIMPLICITY IN WITHHOLDING STATE AND LOCAL INCOME TAXES, SUCH AS USING A STRAIGHT PERCENTAGE OF GROSS PAY OR A PERCENTAGE OF GROSS PAY AFTER CERTAIN EXEMPTIONS. WE UNDERSTAND THAT THESE PROCEDURES ARE NOW IN USE IN SOME STATES. WE RECOMMEND THAT THE SUGGESTION MADE BY GSA BE SUPPLANTED BY A SUGGESTION THAT THE STATES ADOPT SOME SIMPLIFIED METHOD OF COMPUTING WITHHOLDINGS FOR STATE INCOME TAXES AND THAT THE METHOD BE ONE THAT CAN BE APPLIED IN ALL STATES WITH THE HIGHEST DEGREE OF UNIFORMITY POSSIBLE.

Nov 22, 2017

Nov 21, 2017

  • A-P-T Research, Inc.
    We deny the protest in part and dismiss the protest in part.
    B-414825,B-414825.2

Nov 20, 2017

Nov 16, 2017

  • HBI-GF, JV
    We deny the protest.
    B-415036
  • Epsilon Systems Solutions, Inc.
    We dismiss the protest because it raises a matter of contract administration over which we do not exercise jurisdiction.
    B-414410.4

Nov 15, 2017

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