Sales Taxes and Federal Government Contracts
Explore the intersection of sales taxes and federal government contracts with insights from Mark A. Amadeo. Learn about federal government immunity, state and local sales taxes, FAR regulations, and more. Gain valuable knowledge for navigating this complex landscape effectively.
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Sales Taxes and Federal Government Contracts July 29, 2021 Presented By Mark A. Amadeo
Sales Taxes and Federal Government Contracts INTRODUCTIONS Mark A. Amadeo Over 20 years experience as government counsel & law firm counsel LL.M. Georgetown University Law Center; J.D. University of Wisconsin Law School; B.A. Boston College Founder & Managing Partner of Amadeo Law Firm, PLLC Focus on Government Contracting & Technology Review/negotiation: FAR/DFARS Compliance Pre & Post Award Teaming, JV s & Subcontracts Technology: IP Preservation & Commercialization
Sales Taxes and Federal Government Contracts July 29, 2021
Sales Taxes and Federal Government Contracts Introduction Frequently overlooked Wayfair decision
Sales Taxes and Federal Government Contracts Federal Government Immunity McCulloch v Maryland FAR 29.302 Federal government leases and purchases are generally immune
Sales Taxes and Federal Government Contracts Federal Government Immunity Federal Government Contractors Osborne v. Bank of the U.S. James v. Davo Contracting U.S. v. New Mexico FAR 29.303
Sales Taxes and Federal Government Contracts State and Local Sales Taxes Contractors - look to state and local laws for sales tax exceptions/exemptions (FAR 29.303(b)) Contractors should keep in mind: Nearly all states apply sales taxes Sales taxes apply to sales within borders Who or what the tax is imposed on
Sales Taxes and Federal Government Contracts FAR Fixed Price Contracts (FAR 29.401) 52.229-3 price includes all applicable state/local taxes no adjustments 52.229-4 price includes all applicable state/local taxes SHALL be adjusted for after-imposed taxes Cost Reimbursement (FAR 31.204-41) Allowable unless contractor is eligible for an exemption
Sales Taxes and Federal Government Contracts State and Local Sales Taxes Step 1 Do sales taxes even apply? Generally: Sales or retail sales Tangible personal (biz & indiv) property Very few taxable services Step 2 If so, any applicable exemptions? Government contractor exemptions Title passing language FAR Clauses Generally applicable exemptions
Sales Taxes and Federal Government Contracts Maryland Step 1 Do sales taxes even apply? Rebuttable presumption - applies to all sales Retail sales Tangible personal property Taxable services narrow & targeted Excludes Resales, Production Activity Step 2 Are there any exemptions? DoD Contractors - testing equipment Research materials, manufacturing machinery
Sales Taxes and Federal Government Contracts Virginia Step 1 Do sales taxes even apply? Retail sales tangible personal property Excludes resales Step 2 Are there any exemptions? Commercial and Manufacturing Tangible PP for use or consumption by the U.S. Government contractors regulation Purchases for resale Mixed contracts - true object test by order
Sales Taxes and Federal Government Contracts Best Practices Address sales tax issues up front Include protections in purchase orders in states that permit them Have exemption certificates ready
Sales Taxes and Federal Government Contracts Questions? Contact: Mr. Mark A. Amadeo Mr. Mark A. Amadeo Washington DC Washington DC + 1 - - 2 0 2 2 0 2 6 4 0 6 4 0 2 0 9 0 mamadeo@ mamadeo@amadeolaw.com amadeolaw.com www.amadeolaw.com www.amadeolaw.com + 1 2 0 9 0
Sales Taxes and Federal Government Contracts THANK YOU FOR JOINING OUR WEBINAR! The Recorded Webinar Can Be Found Here: http://amadeolaw.com/index.php/firm-resources/webinars
