Once again the sales & use taxation on sales to or by government entities vary widely by state. Here are some issues you need to be aware of when dealing with these entities.

Government Issues:

In the vast majority of states, sales to the U.S. government are exempt. This is because it is unconstitutional for states to tax the federal government. However, a few states do tax sales to the U.S. government on the basis that the tax is actually a tax on the seller, e.g. Arizona.

Most states will exempt sales to the state and local governments, cities & counties. But watch out, a number of states tax themselves. In most cases, sales by state & local governments are taxable particularly if they are sales in competition with private industries. There are numerous exceptions to these general statements. We have researched each state to determine their status.

Feel free to call or e-mail us to discuss any tax issues you may have.

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