A-23419, JUNE 18, 1932, 11 COMP. GEN. 489
Highlights
THERE IS FORWARDED HEREWITH A CERTIFICATE OF U.S. THERE IS ALSO ATTACHED BILL OF THE ABOVE REFERRED TO COMPANY FOR 54 CENTS AS TAX ON 9 GALLONS AT 6 CENTS PER GALLON AND LETTER OF THE SOUTH CAROLINA TAX COMMISSION. THIS PURCHASE WAS NOT MADE AS A RESULT OF A CONTRACT BUT IN THE OPEN MARKET AND TAX WAS EXEMPTED WHEN MAKING THE PURCHASE AS SHOWN BY THE ENCLOSED CERTIFICATE. THERE WAS INCLOSED A LETTER FROM THE CHAIRMAN. STATING THAT THE EXEMPTION BLANK CAN NOT BE HONORED AS THE PURCHASE WAS MADE FROM AN ITINERANT DEALER. AS THE FEDERAL GOVERNMENT IS ENTITLED TO PURCHASE GASOLINE FREE FROM ANY STATE TAX (SEE CASE OF THE PANHANDLE OIL COMPANY V. THERE IS NO AUTHORITY FOR PAYMENT TO THE DEALER OF THE TAX IN QUESTION.
A-23419, JUNE 18, 1932, 11 COMP. GEN. 489
STATE TAX ON GASOLINE THE FACT THAT THE STATE OF SOUTH CAROLINA REFUSES TO HONOR A TAX EXEMPTION CERTIFICATE GIVEN TO A RETAIL DEALER FROM WHOM THE UNITED STATES HAS PURCHASED GASOLINE TAX FREE DOES NOT MAKE THE FEDERAL GOVERNMENT LIABLE TO THE DEALER FOR THE TAX ON SUCH PURCHASE.
COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE, JUNE 18, 1932:
THERE HAS BEEN RECEIVED, PRESUMABLY BY YOUR DIRECTION, THE FOLLOWING LETTER FROM THE DISBURSING AGENT, UNITED STATES COAST AND GEODETIC SURVEY:
FOR THE INFORMATION AND INSTRUCTION OF THIS OFFICE AS TO THE PROPER COURSE TO BE PURSUED IN THE INSTANT AND SIMILAR CASES, THERE IS FORWARDED HEREWITH A CERTIFICATE OF U.S. GOVERNMENT MOTOR FUEL TAX EXEMPTION NO. C- 85658, COVERING THE PURCHASE OF 9 GALLONS OF GASOLINE AT .146 PER GALLON, $1.31, FROM THE AMINE AND OAKLAND ST. STATION OF THE SUMTER MOTOR INN BY LIEUT. C. D. MEANEY. THERE IS ALSO ATTACHED BILL OF THE ABOVE REFERRED TO COMPANY FOR 54 CENTS AS TAX ON 9 GALLONS AT 6 CENTS PER GALLON AND LETTER OF THE SOUTH CAROLINA TAX COMMISSION, DATED MAY 20TH, ADDRESSED TO THIS OFFICE. THIS PURCHASE WAS NOT MADE AS A RESULT OF A CONTRACT BUT IN THE OPEN MARKET AND TAX WAS EXEMPTED WHEN MAKING THE PURCHASE AS SHOWN BY THE ENCLOSED CERTIFICATE.
AS STATED ABOVE, THIS OFFICE DESIRES INSTRUCTION AS TO THE PROCEDURE TO BE FOLLOWED IN SUCH CASES.
IN ADDITION TO THE TAX EXEMPTION FORM AND INVOICES OF THE DEALER FOR 54 CENTS AS STATE TAX UPON NINE GALLONS OF GASOLINE, THERE WAS INCLOSED A LETTER FROM THE CHAIRMAN, SOUTH CAROLINA TAX COMMISSION, ADDRESSED TO THE DISBURSING OFFICER, STATING THAT THE EXEMPTION BLANK CAN NOT BE HONORED AS THE PURCHASE WAS MADE FROM AN ITINERANT DEALER.
AS THE FEDERAL GOVERNMENT IS ENTITLED TO PURCHASE GASOLINE FREE FROM ANY STATE TAX (SEE CASE OF THE PANHANDLE OIL COMPANY V. MISSISSIPPI, 277 U.S. 218), AND HAS DONE SO IN THIS CASE, THERE IS NO AUTHORITY FOR PAYMENT TO THE DEALER OF THE TAX IN QUESTION. SEE DECISION TO YOU OF FEBRUARY 12, 1932, A-23419, WITH RESPECT TO A SIMILAR SITUATION IN THE STATE OF MASSACHUSETTS.