Overview
This section identifies specific permanent exemptions granted by the Secretary of the Treasury that relieve the United States government from paying federal communications excise taxes and federal highway vehicle users taxes.
Key Rules
- Communications Excise Tax: Under 26 U.S.C. 4293, the U.S. is exempt from the communications excise tax (26 U.S.C. 4251) provided the supplies or services are for the exclusive use of the federal government.
- Federal Highway Vehicle Users Tax: Under 26 U.S.C. 4483(b), the U.S. is exempt from the highway use tax imposed by 26 U.S.C. 4481.
- Leasing Applicability: The highway vehicle tax exemption applies to the United States regardless of whether the vehicle is government-owned or leased.
- Regulatory Authority: These exemptions are based on specific Secretarial Authorizations documented in Internal Revenue Cumulative Bulletins from 1947 and 1956.
Practical Implications
- Contractors providing telecommunications services or vehicle leases to the government should ensure these specific federal taxes are excluded from their price proposals and billings.
- Contracting Officers must verify that the government is not being charged for these exempted taxes, as the immunity applies by law to any services or vehicles used exclusively by the United States.