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B-204517 1 (1982-02-22)

handle is hein.gao/gaobadkbz0001 and id is 1 raw text is: ., TU,3 COMPTRVLLER SENERAL DECISION , - . T1H UlITE1D LTATIME WASHINGTON, O0v 201aO10 FILE: B-204517 DATE February 22, 1982 MATTFR OF; Veterans' .N pinistration MedicalCenters-Payment of Alabara Public Utility License Tax 01(3(ST: Veterane'._A iinstation MedicalCentejs arenot cQstttionly in~nnie from paying Alabama public utility ltcerfse tax which was added to'.thelrbtlls by Alabama (wer Company, Legal incideh e-of state tax, which is levied on vendor of servhijes to United States, and which is not required by taxing statute to be passed through to consumer, is on vendor, not the United State.. United.States is not'constitu- tionally immune from such vendor tax, U'ility com- mission order recnuiring utility to bill customers for tax does not transfe: legal Incidence of tax to customers, .lte Deputy Administrator-Qf the General Services -rdmlnis ,j4tion has requested our decision on hether the Veterans', Administration Medical Centers (VA Centers) located in Alabama must Opy that Pr'- tion of their electric bills which represents'-a 3,8 percent inoiease in the Alabama public utility license tax, This increase was imposed by Alabama statute on the Alabama Power Company, whichpassed it on to its customers, includting the VA Centers, in their el[ectric bills, The tax pass-through was provided for in an Order of the Alabama Pub- lic Service Commission (PSC), The Deputy Adinistrator requests this decision because the VA Centers purchase electricity under an area- wide contract between the General Services Administration and Alabama Power. For the reasons indibated below, we conclude that the VA Centers are obligated to pay the portion of their bills attributable to the tax Increase. The VA Centers should reimburse the Alabamna Power Com- pany for the payments they have withheld. The license tax was levied by Alabamna statute as follows: EPach person, firm or .-crporation, peratng an electric or hydroelectric public utility shall pay to the state a license tax equal to two and two-tenths percent on each $1.00 of gross receipts of such public utility for the preceding year * * *. Such license tax shall be-paid to the department of revenue by check made payable to the treasurer and shall be paid quarterly, one fourth on October 1, one fourth on January 1, one fourth on April 1 and one fourth on July 1 * * Code of Alabama S 40-21-53 (1975).

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