Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

495.0000 SALE

Annotation 495.0397

(a) IN GENERAL—DEFINITION

495.0397 Reimbursement of Government Fees. The State Agency for Surplus Property, a part of Department of General Services, acquired two vehicles under the federal surplus property disposition plan and donated them to the Pleasant Valley School District in exchange for $700 and $450 handling and service charges. These payments do not represent gross receipts and do not cause a sale to have occurred because federal law requires that costs for packing, loading, etc., of donated surplus property shall be borne by the designated donee by reimbursement to the federal government. In addition, the state's plan of operation to comply with the federal law requires that the donee reimburse the state for the costs paid to the federal government. The amounts paid by the school district are fees for government services and not gross receipts from the sale of tangible personal property. 8/22/94.