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B-199838 1 (1981-10-20)

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DECISION





FILE: B-199838


THE COMPTROLLER GENERAL
OF THE UNITED STATES
WASHINGTON. 0.C. 20548



       DATE:  October 20, 1981


MATTER OF: Payment of Building Permit Fee for Government
               Construction Project


DIGEST:


Claim by municipality for payment of building permit fee
for Government construction project which arose in 1972,
is barred by 31 U.S.C. § 71a, which bars claims accruing
more than 6 years prior to receipt in the General Ac-
counting Office. Statute's exception for claims by
states, territories, possessions and the District of
Columbia does not apply to subdivisions of states. See
B-159110, June 27, 1966.


     This is in response to a request made on behalf of the Secretary
of Transportation for our opinion regarding the propriety of payment
by the Federal Aviation Administration (FAA) of a building permit fee
in the amount of $2,826.50 to the Village of Farmington, Minnesota,
in connection with the construction of the Minneapolis Air Route
Traffic Control Center (ARIC) in 1972.

     The record shows that the Traffic Control Center was erected
pursuant to a contract that contained the standard Permits and
Responsibilities clause which provides that:

          The Contractor shall, without additional expense
     to the Government, be responsible for obtaining any
     necessary licenses and permits, and for complying with
     any applicable Federal, State, and municipal laws, codes,
     and regulations, in connection with the prosecution of
     the work. * * *

However, the contractor apparently did not secure a building permit
or pay the building permit fee in accordance with the requirements of
the Farmington Village ordinance. Since the contractor dissolved its
business upon completion of the ARTCC, the municipality now seeks
payment by the FAA for the building permit fee.

     A legal opinion prepared by the FAA Great Lakes Region takes the
position that the building permit fee was in the nature of a tax
against the Government and thus unauthorized. The opinion states that
because no services were performed by the municipality in return for
the fee, it amounted to a tax. The opinion also asserts that the re-
sponsibility for determining whether the fee was to be paid, and its
payment if owed, rested with the contractor under the Permits and
Responsibilities clause.


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