Payment of State Sales Taxes or Late Payment Charges on Utility Bills by a Federal Agency

B-195246: Aug 8, 1979

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An inquiry was made as to whether the payment of state sales taxes or late payment charges on utility bills may be paid by a federal agency. The general rule is that the federal government is immune from payment of state taxes. The determination as to which party is legally responsible for the payment of the tax is a matter of statutory construction. No general rule can be stated as to the government's liability for a sales tax which will apply in every state. The particular state taxing statute must be examined. There is another consideration in dealing with utility contracts. Sometimes the sales tax is a part of the utility's approved tariff. If the government has agreed to pay the tariff, it is also obligated to pay the part of the tariff attributable to the tax. If a utility company's rate schedule requires late payments for overdue accounts and the government accepts service in accordance with the rate schedule, it becomes bound to pay the late charges.

Mar 20, 2018

Mar 19, 2018

  • Ampcus, Inc.
    We deny the protest.
  • AMAR Health IT, LLC
    We dismiss the protest because our Office does not have jurisdiction to entertain protests of task orders issued under civilian agency multiple-award, indefinite-delivery, indefinite-quantity (IDIQ) contracts that are valued at less than $10 million.
  • Centurum, Inc.--Costs
    We grant the request.

Mar 15, 2018

  • ORBIS Sibro, Inc.
    We sustain the protest in part and deny it in part.

Mar 14, 2018

Mar 13, 2018

  • Interoperability Clearinghouse
    We dismiss the protest because the protester, a not-for-profit entity, is not an interested party to challenge this sole-source award to an Alaska Native Corporation under the Small Business Administration's (SBA) 8(a) program.
  • Yang Enterprises, Inc.
    We dismiss the protest.

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