B-217805: Apr 11, 1986

THOMAS COLEMAN: HOUSE OF REPRESENTATIVES THIS IS IN RESPONSE TO YOUR LETTER OF FEBRUARY 19. SCOTT ASSERTS THAT FEDERAL EMPLOYEES TRAVELING ON OFFICIAL BUSINESS ARE ANNUALLY REIMBURSED $1.75 BILLION FOR HOTEL AND MOTEL ACCOMMODATIONS. $158 MILLION OF WHICH ARE STATE AND LOCAL TAXES. THE LEGAL INCIDENCE OF STATE AND LOCAL TAXES IS ON THE EMPLOYEE AND NOT ON THE GOVERNMENT SO THAT THE GOVERNMENT CANN...

B-217805: Published: Apr 11, 1986. Publicly Released: May 12, 1986.

GAO discussed a federal employee's proposal that the government assume direct responsibility for its employees' lodging costs incident to official travel and exercise its constitutional immunity from paying state and local taxes, at substantial savings, by issuing credit cards to federal employees in the government's name. GAO found no legal bar to the proposal but noted that: (1) distribution of...