[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: 48CFR29.305]

[Page 553]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 29_TAXES--Table of Contents
 
                   Subpart 29.3_State and Local Taxes
 
Sec.  29.305  State and local tax exemptions.

    (a) Evidence of exemption. Evidence needed to establish exemption 
from State or local taxes depends on the grounds for the exemption 
claimed, the parties to the transaction, and the requirements of the 
taxing jurisdiction. Such evidence may include the following:
    (1) A copy of the contract or relevant portion.
    (2) Copies of purchase orders, shipping documents, credit-card-
imprinted sales slips, paid or acknowledged invoices, or similar 
documents that identify an agency or instrumentality of the United 
States as the buyer.
    (3) A U.S. Tax Exemption Form (SF 1094).
    (4) A State or local form indicating that the supplies or services 
are for the exclusive use of the United States.
    (5) Any other State or locally required document for establishing 
general or specific exemption.
    (6) Shipping documents indicating that shipments are in interstate 
or foreign commerce.
    (b) Furnishing proof of exemption. If a reasonable basis to sustain 
a claimed exemption exists, the seller will be furnished evidence of 
exemption, as follows:
    (1) Under a contract containing the clause at 52.229-3, Federal, 
State, and Local Taxes, or at 52.229-4, Federal, State, and Local Taxes 
(State and Local Adjustments), in accordance with the terms of those 
clauses.
    (2) Under a cost-reimbursement contract, if requested by the 
contractor and approved by the contracting officer or at the discretion 
of the contracting officer.
    (3) Under a contract or purchase order that contains no tax 
provision, if--
    (i) Requested by the contractor and approved by the contracting 
officer or at the discretion of the contracting officer; and
    (ii) Either the contract price does not include the tax or, if the 
transaction or property is tax exempt, the contractor consents to a 
reduction in the contract price.

[48 FR 42293, Sept. 19, 1983, as amended at 62 FR 237, Jan. 2, 1997; 68 
FR 13205, Mar. 18, 2003]

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