B-164078, MAY 28, 1968, 47 COMP. GEN. 687

B-164078: May 28, 1968

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IS PROPER FOR PAYMENT UNDER SECTION 4.2G OR SECTION 3 OF BUREAU OF THE BUDGET CIRCULAR NO. THE CLAIM IS FOR REIMBURSEMENT OF A USE TAX LEVIED BY THE STATE OF CALIFORNIA ON A NEW MOBILE HOME PURCHASED BY THE EMPLOYEE INCIDENT TO HIS TRANSFER FROM SALT LAKE CITY. WE HAVE BEEN INFORMALLY ADVISED THAT THE EMPLOYEE SOLD HIS PERMANENT-TYPE RESIDENCE IN UTAH AND PURCHASED A NEW MOBILE HOME FOR USE AS LIVING QUARTERS AT HIS NEW STATION. THAT HE WAS REQUIRED TO PAY THE USE TAX BEFORE HE COULD REGISTER HIS MOBILE HOME IN CALIFORNIA. A-56 IS CONCERNED ONLY WITH EXPENSES RELATING TO REAL ESTATE TRANSACTIONS. SINCE THE NEW MOBILE HOME WAS PURCHASED AT THE OLD STATION AND THE USE TAX WAS PAID UNDER THE PROVISIONS OF THE CALIFORNIA VEHICLE CODE THE USE TAX IS NOT TO BE REGARDED AS BEING PAID IN CONNECTION WITH A "REAL ESTATE TRANSACTION" AND THUS NOT REIMBURSABLE UNDER SECTION 4.2G OF THE CIRCULAR.

B-164078, MAY 28, 1968, 47 COMP. GEN. 687

OFFICERS AND EMPLOYEES - TRANSFERS - RELOCATION EXPENSES - MISCELLANEOUS EXPENSES - USE TAXES A CIVILIAN EMPLOYEE WHO INCIDENT TO A TRANSFER FROM UTAH TO CALIFORNIA SOLD HIS PERMANENT TYPE HOME AT HIS OLD DUTY STATION WHERE HE PURCHASED A NEW MOBILE HOME FOR USE AS LIVING QUARTERS AT HIS NEW DUTY STATION MAY BE REIMBURSED THE USE TAX LEVIED BY THE STATE OF CALIFORNIA NOT AS AN EXPENSE PAID IN CONNECTION WITH A REAL ESTATE TRANSACTION UNDER SECTION 4.2G OF BUREAU OF THE BUDGET CIRCULAR NO. A 56, BUT AS A MISCELLANEOUS EXPENSE UNDER SECTION 3.1, WHICH IN AUTHORIZING REIMBURSEMENT OF THE USE TAX IMPOSED ON AUTOMOBILES BROUGHT INTO SOME JURISDICTIONS DOES NOT EXCLUDE THE REIMBURSEMENT OF USE TAXES ON ITEMS OTHER THAN AUTOMOBILES. THEREFORE, THE USE TAX MAY BE CONSIDERED IN DETERMINING THE AMOUNT OF THE MISCELLANEOUS EXPENSES ALLOWANCE REIMBURSABLE UNDER SECTION 3 OF THE CIRCULAR TO THE EMPLOYEE.

TO ROBERT J. SCHULLERY, DEPARTMENT OF TRANSPORTATION, MAY 28, 1968:

WE REFER TO YOUR LETTER OF APRIL 18, 1968, REFERENCE MS-430, REQUESTING OUR DECISION AS TO WHETHER A CLAIM FOR $179 SUBMITTED TO YOU BY MR. ROBERT J. HALL, AN EMPLOYEE OF YOUR AGENCY, IS PROPER FOR PAYMENT UNDER SECTION 4.2G OR SECTION 3 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56. THE CLAIM IS FOR REIMBURSEMENT OF A USE TAX LEVIED BY THE STATE OF CALIFORNIA ON A NEW MOBILE HOME PURCHASED BY THE EMPLOYEE INCIDENT TO HIS TRANSFER FROM SALT LAKE CITY, UTAH, TO SAN JOSE, CALIFORNIA.

WE HAVE BEEN INFORMALLY ADVISED THAT THE EMPLOYEE SOLD HIS PERMANENT-TYPE RESIDENCE IN UTAH AND PURCHASED A NEW MOBILE HOME FOR USE AS LIVING QUARTERS AT HIS NEW STATION, AND THAT HE WAS REQUIRED TO PAY THE USE TAX BEFORE HE COULD REGISTER HIS MOBILE HOME IN CALIFORNIA.

SECTION 4 OF CIRCULAR NO. A-56 IS CONCERNED ONLY WITH EXPENSES RELATING TO REAL ESTATE TRANSACTIONS. MOREOVER, WE NOTE THAT H. REPT. NO. 1199, 89TH CONG., ON H.R. 10607, ENACTED AS PUBLIC LAW 89-516, 5 U.S.C. 5724A, IN DISCUSSING THE SALE OR PURCHASE OF A RESIDENCE SPECIFICALLY REFERS TO "REAL ESTATE.' (SEE PP. 6 AND 13.) SINCE THE NEW MOBILE HOME WAS PURCHASED AT THE OLD STATION AND THE USE TAX WAS PAID UNDER THE PROVISIONS OF THE CALIFORNIA VEHICLE CODE THE USE TAX IS NOT TO BE REGARDED AS BEING PAID IN CONNECTION WITH A "REAL ESTATE TRANSACTION" AND THUS NOT REIMBURSABLE UNDER SECTION 4.2G OF THE CIRCULAR.

SECTION 3.1 OF THE CIRCULAR AUTHORIZING THE MISCELLANEOUS EXPENSES ALLOWANCE PROVIDES FOR THE REIMBURSEMENT OF VARIOUS TYPES OF EXPENSES. WHILE THIS SECTION CITES AS A TYPE OF REIMBURSABLE COST USE TAXES IMPOSED WHEN BRINGING AUTOMOBILES INTO SOME JURISDICTIONS, IT DOES NOT EXCLUDE THE REIMBURSEMENT OF USE TAXES ON ITEMS OTHER THAN AUTOMOBILES. LIKEWISE, H. REPT. NO. 1199, CITED ABOVE, INDICATES THAT USE TAXES FALL IN THE MISCELLANEOUS EXPENSES CATEGORY AND MAKES NO MENTION THAT SUCH USE TAXES ARE LIMITED TO AUTOMOBILES. (SEE PAGE 13.)

IN VIEW OF THE ABOVE THE USE TAX MAY BE CONSIDERED IN DETERMINING THE AMOUNT OF THE MISCELLANEOUS EXPENSES ALLOWANCE REIMBURSABLE UNDER SECTION 3 OF THE CIRCULAR.