B-8790, MAY 7, 1940, 19 COMP. GEN. 909
Highlights
STATE GASOLINE TAX - FEDERAL LIABILITY THE UNITED STATES IS NOT LIABLE FOR PAYMENT OF THE NORTH DAKOTA MOTOR VEHICLE FUEL SALES TAX ON PURCHASES MADE IN SAID STATE FOR THE USE OF THE FEDERAL GOVERNMENT BUT IF QUOTATION OF A PRICE EXCLUSIVE OF THE TAX CANNOT BE OBTAINED. AS FOLLOWS: TRANSMITTED HEREWITH IS A COPY OF THIS BUREAU'S LETTER OF MARCH 29. THERE IS ALSO TRANSMITTED A LETTER FROM THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NORTH DAKOTA. COMMENTING UPON THAT LETTER AND ADVISING THE POSTMASTER THAT PAYMENT OF THE NORTH DAKOTA STATE TAX ON GASOLINE PURCHASED FOR THE USE OF THE FEDERAL GOVERNMENT WILL BE REQUIRED. WOULD IT BE PERMISSIBLE FOR THE DEPARTMENT TO ENTER INTO CONTRACTS COVERING ITS REQUIREMENTS IN THE STATE OF NORTH DAKOTA AT PRICES INCLUDING THE STATE TAX AND HAVE REPRESENTATIVES PURCHASING THE GASOLINE ACCOMPLISH STANDARD FORM 1094 SHOWING TAX PAID.
B-8790, MAY 7, 1940, 19 COMP. GEN. 909
STATE GASOLINE TAX - FEDERAL LIABILITY THE UNITED STATES IS NOT LIABLE FOR PAYMENT OF THE NORTH DAKOTA MOTOR VEHICLE FUEL SALES TAX ON PURCHASES MADE IN SAID STATE FOR THE USE OF THE FEDERAL GOVERNMENT BUT IF QUOTATION OF A PRICE EXCLUSIVE OF THE TAX CANNOT BE OBTAINED, CONTRACT MAY BE AWARDED TO THE LOWEST BIDDER AT HIS BID PRICE WHICH INCLUDES THE TAX, THE TAX EXEMPTION CERTIFICATES OBTAINED FOR THE PURCHASES TO BE TRANSMITTED TO HIS OFFICE FOR USE IN OBTAINING REIMBURSEMENT FROM THE STATE FOR THE AMOUNT OF THE TAX. 19 COMP. GEN. 822, AMPLIFIED.
ACTING COMPTROLLER GENERAL ELLIOTT TO THE POSTMASTER GENERAL, MAY 7, 1940:
THERE HAS BEEN RECEIVED YOUR LETTER OF MAY 1, 1940, AS FOLLOWS:
TRANSMITTED HEREWITH IS A COPY OF THIS BUREAU'S LETTER OF MARCH 29, 1940, ADDRESSED TO THE POSTMASTER AT BISMARCK, NORTH DAKOTA, AND OUTLINING TO HIM IN PERTINENT PART THE APPLICATION OF YOUR DECISION, B 8790, OF MARCH 26, 1940.
THERE IS ALSO TRANSMITTED A LETTER FROM THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NORTH DAKOTA, DATED APRIL 4, 1940, COMMENTING UPON THAT LETTER AND ADVISING THE POSTMASTER THAT PAYMENT OF THE NORTH DAKOTA STATE TAX ON GASOLINE PURCHASED FOR THE USE OF THE FEDERAL GOVERNMENT WILL BE REQUIRED, NOTWITHSTANDING.
UNDER THE CIRCUMSTANCES, WOULD IT BE PERMISSIBLE FOR THE DEPARTMENT TO ENTER INTO CONTRACTS COVERING ITS REQUIREMENTS IN THE STATE OF NORTH DAKOTA AT PRICES INCLUDING THE STATE TAX AND HAVE REPRESENTATIVES PURCHASING THE GASOLINE ACCOMPLISH STANDARD FORM 1094 SHOWING TAX PAID, SUCH FORMS TO BE SUBMITTED TO YOUR OFFICE FOR ADJUSTMENT IN ACCORDANCE WITH THE PROVISIONS OF GENERAL REGULATIONS, NO. 86?
AS STATED IN MY DECISION OF MARCH 26, 1940, 19 COMP. GEN. 822, TO YOU, THIS OFFICE DOES NOT RECOGNIZE ANY LIABILITY ON THE PART OF THE UNITED STATES FOR THE PAYMENT OF THE AMOUNT OF THE TAX PRESCRIBED BY THE TERMS OF NORTH DAKOTA LAWS 1929, C. 166, AS AMENDED, ON MOTOR VEHICLE FUEL PURCHASED IN SAID STATE BY OR FOR THE USE OF THE FEDERAL GOVERNMENT. HOWEVER, SINCE IT APPEARS THAT THE INTERESTS OF THE UNITED STATES WOULD BE ADEQUATELY PROTECTED BY FOLLOWING THE PROCEDURE STATED IN THE CONCLUDING PARAGRAPH OF YOUR LETTER, YOU ARE ADVISED THAT, IF, IN THE SOLICITATION OF BIDS FOR THE FURNISHING OF GASOLINE REQUIRED TO BE PURCHASED IN NORTH DAKOTA, IT DEVELOPS THAT YOUR DEPARTMENT IS UNABLE TO OBTAIN A QUOTATION OF A PRICE WHICH IS IN FACT EXCLUSIVE OF THE AMOUNT OF THE SAID TAX, THIS OFFICE WOULD NOT BE REQUIRED TO OBJECT TO THE CONSIDERATION OF THE BIDS AS SUBMITTED AND THE AWARDING OF A CONTRACT TO THE LOWEST BIDDER. THE TAX EXEMPTION CERTIFICATES ( STANDARD FORM NO. 1094) OBTAINED FOR THE PURCHASES MADE UNDER THE CONTRACT SHOULD BE PROMPTLY TRANSMITTED TO THIS OFFICE IN ACCORDANCE WITH THE PROVISIONS OF GENERAL REGULATIONS NO. 86, IN ORDER THAT THE NECESSARY STEPS MAY BE TAKEN HERE TO OBTAIN REIMBURSEMENT FROM THE STATE OF NORTH DAKOTA FOR THE AMOUNT OF THE TAX.