[Decision Concerning Education Payment for Sewer Services]

A U.S. Representative requested a decision concerning whether the Department of Education should pay a tax bill that a town levied against it for sewer services. GAO noted that the town rendered the services to a defunct college which Education acquired by foreclosure. GAO held that: (1) the town was constitutionally prohibited from taxing the federal government; and (2) Education should pay for those services it actually received, since the town rendered the services in good faith, and they would have constituted a permissible procurement. Accordingly, the tax should be paid on a quantum meruit basis.