[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR29.305]



[Page 571-572]

 

            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



[[Page 572]]



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]