Subpart 5-Tax Exemption Forms 11.500 General. (a) This Subpart prescribes forms and procedures to provide evidence appropriate to establish exemption from Federal, State, and local taxes, and the form required to purchase cutting oil at the tax rate of three cents per gallon rather than six cents per gallon. (b) Unless the contract otherwise requires, evidence of exemption shall not be issued if the amount of taxes on any one invoice or purchase is $10.00 or less. (c) With respect to the form set out in 11.501-3, the Internal Revenue Service will accept one certificate covering all orders under a single contract for a specified period not exceeding four calendar quarters. 11.501 Federal Excise Taxes. The forms of certificates set forth in 11.501-1 and 11.501-3 may be reproduced locally. 11.501-1 Certificate of Export to a Possession or to Puerto Rico. The following form of exemption certificate shall be used as proof of exportation or shipment to a possession or Puerto Rico, in accordance with 11.201(ii) and 11.202 (ii). CERTIFICATE OF EXPORT (For use by purchasers of articles for export or shipment to a possession under Sections 4056 and 4221(a)(2), Internal Revenue Code of 1954) Date:.......... (Name of Contractor).. The undersigned does hereby certify that (Quantity and Description of Supplies).. which were purchased for export, or for shipment to a possession of the United States or to Puerto Rico, under Contract No. were in fact exported to a foreign country, or shipped to a possession of the United States or to Puerto Rico, and a copy of the export bill of lading No...... or loading manifest No. ..... pursuant to which the supplies were shipped, is being retained in the files of (Official address of office).. (Signature)... This certificate is not intended for use as proof in claiming drawback of import taxes. 11.501-2[Reserved] 11.501-3 Cutting Oil Certificate. The following form of certificate shall be used by the purchaser of cutting oil, in accordance with 11.102-4 (c). CUTTING OIL CERTIFICATE (For use by purchaser of lubricating oil subject to tax under Section 4091 of the Internal Revenue Code of 1954, for use by purchaser in cutting and machining operations on metals) TAXES End Use: The undersigned hereby certifies that he is officially authorized to issue tax-exemption certificates for the National Aeronautics and Space Administration under the above described contract, and that the product indicated above, being purchased under said contract, is purchased for the following use as a lubricant in cutting and machining operations on metals: The undersigned understands that the National Aeronautics and Space Administration must be prepared to establish by satisfactory evidence the actual use or disposition made of such oil, and that upon his use of the oil for a lubricating purpose other than in cutting and machining operations on metals, or upon his sale or other disposition of oil, he is required to notify the manufacturer. The undersigned understands that he and all guilty parties will, for fraudulent use of this certificate for the purpose of purchasing oils tax free rather than at the rate of 6 cents a gallon, be subject to a fine of not more than $10,000 or imprisonment for not more than 5 years, or both, together with the costs of prosecution. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Contract Period. By Title Address Identification Card No. 11.502 State and Local Taxes. 11.502-1 Types of Evidence of Exemption. Evidence appropriate to establish exemption or immunity from State or local taxes will vary depending upon the grounds of exemption or immunity claimed, the parties to the transaction, and the requirements of the taxing jurisdiction. Such evidence includes but is not limited to the following: (i) U.S. Government Tax Exemption Certificate (Standard Form 1094); (ii) a copy of the contract or a portion thereof; (iii) shipping documents indicating that shipments are in interstate or foreign commerce; (iv) a State or local form indicating that supplies or services are for the exclusive use of the United States; or (v) any other State or locally required form, certificate, or document to establish general or specific exemption. 11.502-2 When Evidence of Exemption Is To Be Furnished. (a) Unless there does not exist any reasonable basis to sustain a claimed exemption, a contractor or vendor will be furnished evidence of exemption under a: (i) contract which contains the clause prescribed in either 11.401-1 or 11.401-2 in accordance with the terms of those clauses; (ii) cost-reimbursement type contract at the request of the contractor or at the discretion of the contracting officer; or (iii) contract or purchase order which contains no provision regarding taxes, at the request of the contractor or at the discretion of the contracting officer, if the contractor warrants that the contract price does not include the tax, or if he consents to a reduction in the contract price if the evidence of exemption is accepted by the taxing jurisdiction. 11.502 CFR TITLE 41 CHAPTER 18 TAX EXEMPTION FORMS (b) In case of disagreement as to whether there exists a reasonable basis upon which to sustain exemption of any transaction, the matter should be resolved in accordance with 11.001. 11.502-3 Procedure. (a) When a State or local sales tax attaches at the time of a sale to the United States and the vendor sells to the United States at a price which is exclusive of the tax, Standard Form 1094 shall be furnished to the vendor where the vendor or dealer requires evidence of the tax-exempt sale for use in claiming exemption from payment of the tax to the taxing authority. (b) When a State or local tax attaches at the time of sale to the consumer but the vendor refuses to sell at a price exclusive of the tax, Standard Form 1094 shall be used to obtain a record of the transaction for use by the United States Government in billing the taxing authority for refund of the taxes paid. In case of vendor refusal to sell on a tax-exclusive basis, the relevant payment voucher and Standard Form 1094 shall contain mutual cross-references of serial numbers so that the transaction may be identified for refund purposes. The installation shall bill the relevant local or State taxing authority for refund in case of vendor refusal to sell on a tax-exclusive basis. Uncollectible claims shall be referred to the Office of General Counsel, NASA Headquarters. (c) NASA Headquarters will issue tax exemption forms only to contracting officers or their designees. Each NASA office receiving the forms shall maintain an adequate accounting record of the forms to show at all times (i) the number of United States tax exemption certificate books received, (ii) the number of each book issued and to whom issued, (iii) the numbers of those returned for reissue, or cancellation, or as completely used book covers, and (iv) the balances on hand and available for distribution to persons authorized to use them. NASA PROCUREMENT REGULATION 11.502-3 |