About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-211399 1 (1983-11-18)

handle is hein.gao/gaobadlks0001 and id is 1 raw text is: 04. THlE COMPTROLLER GENERAL 0xj ,-V OECISION8 . M0 THE UNITED STATES WASHINGTON. 0.C. 20548 FILE: B-211399 DATE: November 18, 1983 MATTER OF: Vermont Gasoline Tax DIGEST: Subsequent to decision in 57 Comp. Gen. 59 (1977), which held that Federal Government was constitution- ally immune from Vermont gasoline tax, Vermont amended applicable statute, removing language which placed legal incidence of tax on purchaser. Legal incidence of tax now falls on seller, and Federal Government is no longer immune from tax. This decision is in response to a request from Mr. Walter G. Lobisser, Chief, Accounting Branch, U.S. Customs Service, Boston, Massachusetts, regarding the propriety of payment by the Federal Government of the Vermont sales tax on gasoline. We previously ruled on this identical question in 57 Comp. Gen. 59 (1977), holding that the Federal Government was constitutionally immune from the tax. However, since our 1977 decision, the applicable Vermont statute has been revised. We now hold that, as a consequence of the amendment of the statute, the Federal Government is no longer immune from payment of taxes for gaso- line purchased at retail in Vermont. In determining whether the Federal Government may pay a sales tax imposed on its purchase of goods and services, this Office applies the legal incidence test, first employed by the Supreme Court in Alabama v. King and Boozer, 314 U.S. 1 (1941). The Supreme Court distinguished between the economic burden imposed on the United States when it must pay more for goods and services because of sales taxes levied against the seller of goods to the Government, and the constitutionally impermissible burden which occurs when the Government, as a purchaser of goods, is directly liable to the state for taxes imposed on a transaction. In essence, if the tax is a tax on the seller and one which he alone is obligated to pay, the Government may reimburse the seller for his total cost, including tax. How- ever, if the buyer is in any way legally responsible for the payment of the tax, the Federal Government as a buyer cannot be held responsible for such payment. This principle was summa- rized in 55 Comp. Gen. 1358 (1976), a recent decision of this Office regarding the Federal Government's liability for payment of taxes on gasoline imposed by five States: The general rule is that if the incidence of a tax, by State law, is placed on the vendee (ultimate purchaser), then the United States as the vendee is L0[7 35

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most