Overview
This section defines the scope of Subpart 29.3, establishing the regulatory framework for how the Federal Government applies policies and procedures to ensure its property and purchases remain exempt or immune from State and local taxation.
Key Rules
- Establishment of Authority: Directs the implementation of policies regarding the Federal Government’s constitutional immunity and statutory exemptions from non-federal taxes.
- Procedural Mandate: Prescribes the specific procedures that agencies must follow to assert tax-exempt status.
- Focus Areas: Specifically targets two categories: Federal Government property and Federal Government purchases.
Practical Implications
- Cost Avoidance: Ensures that federal funds are not used to pay State and local taxes from which the government is legally exempt, thereby reducing the total cost of acquisitions.
- Compliance for Contractors: Provides the basis for contractors to coordinate with Contracting Officers to obtain tax exemption certificates or other documentation necessary to avoid improper tax charges on government contracts.