A-64067, DECEMBER 14, 1935, 15 COMP. GEN. 509

A-64067: Dec 14, 1935

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STATE GASOLINE TAXES - PRIVATELY OWNED TRUCK LEASED BY FEDERAL GOVERNMENT GASOLINE USED IN THE OPERATION BY AN AGENCY OF THE FEDERAL GOVERNMENT OF A PRIVATELY-OWNED TRUCK LEASED BY THE UNITED STATES IS NOT SUBJECT TO STATE TAXATION AND PAYMENT OF THE TAX TO THE DEALER FROM WHOM THE GASOLINE WAS PURCHASED TAX EXEMPT IS NOT AUTHORIZED. IF IT IS NOT PRACTICABLE TO MAKE USE OF THE STANDARD EXEMPTION FORMS IN FUTURE PURCHASES. 1935: REFERENCE IS HAD TO YOUR LETTER OF OCTOBER 3. AS FOLLOWS: REFERENCE IS MADE TO YOUR COMMUNICATION OF SEPTEMBER 27. WHICH WAS HIRED BY MR. THE RENTAL OF THIS TRUCK IS COVERED BY CONTRACT CBA-346. THE ORIGINAL OF WHICH IS ON FILE IN YOUR OFFICE. THERE ARE ATTACHED HERETO.

A-64067, DECEMBER 14, 1935, 15 COMP. GEN. 509

STATE GASOLINE TAXES - PRIVATELY OWNED TRUCK LEASED BY FEDERAL GOVERNMENT GASOLINE USED IN THE OPERATION BY AN AGENCY OF THE FEDERAL GOVERNMENT OF A PRIVATELY-OWNED TRUCK LEASED BY THE UNITED STATES IS NOT SUBJECT TO STATE TAXATION AND PAYMENT OF THE TAX TO THE DEALER FROM WHOM THE GASOLINE WAS PURCHASED TAX EXEMPT IS NOT AUTHORIZED. IF IT IS NOT PRACTICABLE TO MAKE USE OF THE STANDARD EXEMPTION FORMS IN FUTURE PURCHASES, THERE SHOULD BE COMPLIANCE WITH THE PROCEDURE OF TAKING RECEIPTS, ETC., AS SET OUT IN GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO. 73, 10 COMP. GEN. 579.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE, DECEMBER 14, 1935:

REFERENCE IS HAD TO YOUR LETTER OF OCTOBER 3, 1935, AS FOLLOWS:

REFERENCE IS MADE TO YOUR COMMUNICATION OF SEPTEMBER 27, REFERENCE A- 64067, RELATIVE TO THE REFUSAL OF THE STATE OF VIRGINIA TO ACCEPT TAX EXEMPTION CERTIFICATES COVERING GASOLINE PURCHASED BY MR. S. S. BOGGS FOR USE IN A TRUCK BEARING LICENSE NO. TH19-308, WHICH WAS HIRED BY MR. BOGGS UNDER A CONTRACT FOR OFFICIAL USE IN CONNECTION WITH THE CONSTRUCTION OF THE NASHVILLE-WASHINGTON AIRWAY.

THE RENTAL OF THIS TRUCK IS COVERED BY CONTRACT CBA-346, THE ORIGINAL OF WHICH IS ON FILE IN YOUR OFFICE. THERE ARE ATTACHED HERETO, HOWEVER, A COPY OF THE PROPOSAL AND ACCEPTANCE COVERING THIS TRANSACTION. IT WILL BE OBSERVED THAT THE AWARD WAS MADE ON THE BASIS OF ITEM 2 OF THE PROPOSAL WHICH PROVIDED THAT THE GOVERNMENT SHOULD FURNISH THE GASOLINE AND OIL FOR THE OPERATION OF THIS TRUCK. THE RENTAL CHARGED IS $0.04 3/4 PER MILE. IT WILL BE OBSERVED FROM THE PROPOSAL THAT THE TRUCK WAS FURNISHED WITHOUT DRIVER, THAT THE PRICE OF $0.04 3/4 PER MILE INCLUDED INSURANCE AGAINST FIRE, THEFT, COLLISION, PUBLIC LIABILITY, AND PROPERTY DAMAGE, AND OPERATING EXPENSES SUCH AS TIRES, REPAIR TO TIRES, TRUCK REPAIRS, ETC., BUT THAT THE COST OF GASOLINE AND OIL WAS TO BE BORNE BY THE DEPARTMENT.

IN VIEW OF THE CIRCUMSTANCES, AS NOW PRESENTED, THIS DEPARTMENT WILL APPRECIATE FURTHER INSTRUCTIONS FROM YOUR OFFICE IN THIS CASE.

IT APPEARS FROM THE ENCLOSURES WITH YOUR PRIOR LETTER OF JULY 22,1935, THAT THE QUESTION AROSE IN CONNECTION WITH GASOLINE WHICH WAS PURCHASED AND PAID FOR AT A PRICE NOT INCLUDING THE STATE TAX, THE DEALER HAVING BEEN GIVEN A STANDARD EXEMPTION FORM NO. 44, BUT THAT THE STATE HAS REFUSED TO REFUND OR CREDIT THE DEALER WITH THE AMOUNT OF THE STATE TAXES FOR THE REASON THAT THE TRUCK FOR WHICH THE GASOLINE WAS PURCHASED WAS NOT GOVERNMENT OWNED.

AS THE GASOLINE USED IN THE OPERATION OF THE LEASED TRUCK WAS PURCHASED AND PAID FOR BY THE GOVERNMENT, IT IS IMMATERIAL WHETHER THE TRUCK WAS OWNED BY THE GOVERNMENT OR LEASED BY IT. THE GASOLINE WAS USED BY AN AGENCY OF THE FEDERAL GOVERNMENT AND THEREFORE WAS NOT SUBJECT TO STATE TAXATION. SEE PANHANDLE OIL COMPANY V. MISSISSIPPI, 277 U.S. 218. THE TAX WAS NOT AND CANNOT BE PAID UNDER APPROPRIATIONS OF PUBLIC MONEYS AND NO APPROPRIATION BEING AVAILABLE THEREFORE, THIS OFFICE MAY NOT AUTHORIZE PAYMENT OF THE TAX TO THE DEALER FROM WHOM THE GASOLINE WAS PURCHASED. FUTURE PURCHASES, IF IT IS NOT PRACTICABLE TO MAKE USE OF THE STANDARD EXEMPTION FORM, RECEIPTS SHOULD BE TAKEN IN DUPLICATE AND FORWARDED TO THIS OFFICE IN ACCORDANCE WITH GENERAL REGULATIONS 73, 10 COMP. GEN. 579.