A-23419, MAY 22, 1939, 18 COMP. GEN. 879

A-23419, MAY 22, 1939, 18 COMP. GEN. 879

TAXES - STATE - GASOLINE - REFUND FAILURE SET-OFFS REFUNDS OF TAXES ON GASOLINE CONSUMED IN PRIVATELY OWNED VEHICLES BEING CLAIMED BY THE GOVERNMENT ONLY WHEN IT IS CONCLUSIVELY SHOWN THAT THE USE OF THE SAID VEHICLES WAS FOR OFFICIAL BUSINESS PURSUANT TO FEDERAL STATUTES AND THE OWNERS HAVE BEEN REIMBURSED BY THE UNITED STATES FOR THE AMOUNTS SO EXPENDED FOR THE GASOLINE AND TAX THEREON, THERE REMAINS ONLY FOR THE ACCOUNTING OFFICERS OF THE GOVERNMENT TO SET OFF SUCH STATE INDEBTEDNESS AGAINST AMOUNTS OTHERWISE DUE THE STATE ON GOVERNMENT ACCOUNTS WHERE SAID REFUNDS FAIL OF ACCOMPLISHMENT BECAUSE OF VETOED REFUNDING LEGISLATION.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF STATE, STATE OF OREGON, MAY 22, 1939:

I HAVE YOUR LETTER OF APRIL 15, 1939, INFORMING THIS OFFICE THAT THE CLAIM OF THE UNITED STATES FOR REFUND OF GASOLINE TAX WAS APPROVED BY THE GENERAL ASSEMBLY OF YOUR STATE BUT WAS VETOED BY THE GOVERNOR. YOUINCLOSE A COPY OF THE VETO MESSAGE, AS FOLLOWS:

SECTION 2, ITEM B PROVIDES PAYMENT TO THE UNITED STATES GOVERNMENT IN THE AMOUNT OF $289.74 FOR REFUND OF TAX PAID ON MOTOR VEHICLE FUELS BY SUBDIVISIONS OF THE FEDERAL GOVERNMENT.

THE LAW OF THIS STATE (SECTION 55-1610, OREGON CODE 1930, AS AMENDED) PROVIDES THAT MOTOR VEHICLE FUEL LICENSE TAX SHALL NOT BE IMPOSED ON THE GOVERNMENT OF THE UNITED STATES OR ANY DEPARTMENT THEREOF, FOR OFFICIAL USE OF SAID GOVERNMENT, BUT EVERY DEALER SHALL BE REQUIRED TO REPORT SUCH SALES TO THE SECRETARY OF STATE WITHIN SIX MONTHS FROM THE DATE OF SALE.

THE GOVERNMENT HAS RECOGNIZED THIS LAW BY REGULAR USE OF ITS STANDARD FORM NO. 1094 (UNITED STATES GOVERNMENT TAX EXEMPTION CERTIFICATE), WHEN MAKING PURCHASE OF SUCH FUELS AND IN SECURING PROPER EXEMPTION WHEN SALES ARE MADE BY OTHER THAN CASH PURCHASE. AN EXAMINATION OF THE NUMEROUS VOUCHERS IN SUPPORT OF THIS CLAIM DISCLOSES THAT A VERY GREAT MANY OF THESE PURCHASES WERE MADE BY PRIVATE INDIVIDUALS OPERATING AUTOMOBILES PRIVATELY LICENSED AND THEREFORE WOULD NOT COME UNDER THE EXEMPTION. IS IMPOSSIBLE TO SEGREGATE AND ALLOW SUCH SMALL PARTS OF THIS CLAIM AS MAY PROPERLY BE APPROVED AND I AM THEREFORE VETOING THIS ITEM.

AS HAS BEEN REPEATEDLY EXPLAINED IN OFFICE LETTERS TO YOU OF OCTOBER 19, 1929, JANUARY 8, 1930, AND JULY 21, 1930, REFUNDS OF THE TAX ON GASOLINE CONSUMED IN PRIVATELY OWNED VEHICLES ARE ONLY CLAIMED BY THE FEDERAL GOVERNMENT WHEN IT IS CONCLUSIVELY SHOWN THAT THE USE OF THE PRIVATELY OWNED VEHICLE WAS FOR OFFICIAL BUSINESS PURSUANT TO FEDERAL STATUTES AND THE OWNERS HAVE BEEN REIMBURSED BY THE UNITED STATES FOR THE AMOUNTS SO EXPENDED FOR THE GASOLINE AND THE TAX THEREON. SUCH PURCHASES HAVING BEEN MADE SOLELY FOR THE USE AND BENEFIT OF THE UNITED STATES ARE EXEMPT FROM STATE TAX TO THE SAME EXTENT AS THOUGH PURCHASED AND USED IN FEDERALLY OWNED AUTOMOBILES. AS THE ACTION OF THE GOVERNOR APPARENTLY PRECLUDES ANY REFUND BY THE STATE AT THIS TIME, IT BECOMES NECESSARY FOR THIS OFFICE TO TAKE APPROPRIATE STEPS TO COLLECT THE AMOUNT OF THE INDEBTEDNESS AND TO THAT END ACTION WILL BE TAKEN TO WITHHOLD FROM ANY PAYMENTS ACCRUING TO THE STATE OF OREGON UNDER FEDERAL LAWS THE AMOUNT OF SUCH INDEBTEDNESS.