[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR29.201]

[Page 550-551]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 29_TAXES--Table of Contents
 
                    Subpart 29.2_Federal Excise Taxes
 
Sec.  29.201  General.


    (a) Federal excise taxes are levied on the sale or use of particular 
supplies or services. Subtitle D of the Internal Revenue Code of 1954, 
Miscellaneous Excise Taxes, 26 U.S.C. 4041 et seq., and its implementing 
regulations, 26 CFR parts 40 through 299, cover miscellaneous federal 
excise tax requirements. Questions arising in this area should be 
directed to the agency-designated counsel. The most common excise taxes 
are--
    (1) Manufacturers' excise taxes imposed on certain motor-vehicle 
articles, tires and inner tubes, gasoline, lubricating oils, coal, 
fishing equipment, firearms, shells, and cartridges sold by 
manufacturers, producers, or importers; and
    (2) Special-fuels excise taxes imposed at the retail level on diesel 
fuel and special motor fuels.
    (b) Sometimes the law exempts the Federal Government from these 
taxes. Contracting officers should solicit prices on a tax-exclusive 
basis when it is known that the Government is exempt from these taxes, 
and on a tax-inclusive basis when no exemption exists.

[[Page 551]]

    (c) Executive agencies shall take maximum advantage of available 
Federal excise tax exemptions.

[48 FR 42293, Sept. 19, 1983, as amended at 55 FR 52793, Dec. 21, 1990]