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Payment of Alabama Public Utility License Tax

B-204517: Feb 22, 1982

GAO was asked to determine whether the Veterans' Administration (VA) Medical Centers located in Alabama must pay that portion of their electric bills which represented a 1.8 percent increase of the Alabama public utility license tax. This increase was imposed by statute on the Alabama Power Company, which passed it on to its customers. The pass-through was provided for in an order by the Alabama P...

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B-204517, FEBRUARY 22, 1982, 61 COMP.GEN. 257

B-204517: Feb 22, 1982

TAXES - STATE - GOVERNMENT IMMUNITY - INCIDENCE OF TAX ON VENDOR - PUBLIC UTILITY LICENSE - COMMISSION ORDER TO BILL CUSTOMERS EFFECT VETERANS ADMINISTRATION MEDICAL CENTERS ARE NOT CONSTITUTIONALLY IMMUNE FROM PAYING ALABAMA PUBLIC UTILITY LICENSE TAX WHICH WAS ADDED TO THEIR BILLS BY ALABAMA POWER COMPANY. WHICH IS LEVIED ON VENDOR OF SERVICES TO UNITED STATES. WHICH IS NOT REQUIRED BY TAXING ST...

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