used, the contract shall contain the following supplementary clause: TAXES The term "local taxes" as used in the clause of this contract entitled "Federal, State, and local taxes" includes taxes imposed by a possession of the United States, and the Commonwealth of Puerto Rico. (b) Contracts for supplies to be exported. When a contract containing either the clause set forth in § 111.401-1 or that in § 1-11.401-2 will be for supplies to be exported to foreign destinations and it is determined that the amounts of Federal excise taxes or drawbacks of duties involved are substantial, a clause substantially as follows should be included in invitations and solicitations: FEDERAL EXCISE TAXES AND DUTIES (a) The items covered by this invitation for bids are being procured for export. Bidders are requested to exclude from their bid prices all Federal excise taxes from which this transaction is exempt by virtue of exportation and also an amount equal to any drawback or refund of import duties which may be obtained upon shipment of the supplies. Bids will be evaluated and payments made exclusive of the amounts stated above. (b) Upon the timely request of the Contractor, the Government will furnish such proof of exports as may be necessary to establish an exemption from Federal excise taxes or to enable the Contractor to obtain any applicable refund or drawback for his own account. The clause set forth above may be appropriately amended by deletion of references to drawbacks, if shipment to a possession of the United States or to Puerto Rico is contemplated. [29 FR 10254, July 24, 1964, as amended at 31 FR 6373, Apr. 27, 1966] as to the applicability or allocability of the tax, or where the applicability of the tax is being litigated. (b) When the amount of any specific State or local tax is substantial in relation to the contract price (such as in the case of gasoline taxes) and where for this reason it is determined that procurement without providing for tax escalation (upward or downward) is impracticable, the contract may permit such escalation, in accordance with paragraph (d) of this section. (c) Special consideration should be accorded taxes assessed on the contractor's possession of, interest in, or use of Government-owned real or personal property. The following clause may be inserted in any contract under which the contractor has possession of property to which the Government has title on tax assessment date, pursuant to progress payment clauses or otherwise: All property taxes assessed on the Contractor's possession of, interest in, or use of property, title to which is in the Government, are excluded from the contract price. (d) The specific provisions described in paragraphs (a) and (b) of this section and the additional clause set forth in paragraph (c) of this section shall be used in accordance with agency procedures. (e) (1) Whether State or local taxes are applicable to a purchase of supplies by the Government may depend upon the place and terms of delivery. For example, if the legal incidence of a State tax is on the vendor, and performance of the contract and delivery to the Government are in that State, the tax may apply. If however, the contract requires delivery to the Government outside the State, the tax may not apply because the transaction is in interstate commerce. The form of bill of lading used (i.e., Government bill, commercial bill, commercial bill convertible to Government bill at destination) may also affect the taxability of the transaction. (2) Where a contract will be in a substantial amount, available alternative places and terms of delivery should be considered in the light of possible tax consequences. (f) When Government property is furnished under a facilities contract, the contracting officer shall review the facilities contract when negotiating a subsequent supply contract to assure that the contractor is not reimbursed twice for the same taxes. [31 FR 6373, Apr. 27, 1966] §1-11.402 Cost-reimbursement type contracts. No specific tax clause is required in any cost-reimbursement type contract. In all such contracts the problem of Federal, State, and local taxes (which presents solely a question of allowability of costs in conection with the performance of cost-reimbursement type contracts) is treated in Part 1-15 of this chapter. Subpart 1-11.5-Tax Exemption Forms § 1-11.500 Scope of subpart. This subpart sets forth procedures to provide evidence to establish basis for exemptions from Federal, State, and local taxes, and suggested forms to be used. § 1-11.501 Federal excise tax exemption forms. (a) Unless the contract requires otherwise, evidence of exemption shall not be issued unless the amount of taxes on any one transaction (purchase, invoice, aggregate billing, or payment for multiple purchases) exceeds $10. (b) With respect to the forms set out in §§ 1-11.501-2 and 1-11.501-3, the Internal Revenue Service will accept one certificate covering all orders under a single contract for a specified period not exceeding four calendar quarters. [29 FR 10254, July 24, 1964, as amended at 31 FR 6373, Apr. 27, 1966; 46 FR 17560, Mar. 19, 1981] § 1-11.501-1 Certificate of export to a possession or Puerto Rico. The following form of exemption certificate which is not intended for use as proof in claiming drawback of import taxes, may be used as proof of exportation or shipment to a posses or of a foreign nation, including aircraft owned by the United States or by a foreign nation and constituting a part of the armed forces thereof. The undersigned understands that if the article or articles are used for any purpose other than as stated in this certificate, or are resold or otherwise disposed of, the purchaser must report such fact to the manufacturer; or, in the case of special motor fuel, that if the fuel is sold or used otherwise than as stated in this certificate and for a taxable purpose specified in section 4041(b) of the Internal Revenue Code, liability for the tax upon such sale or use will attach. The undersigned also understands that the purchaser must be prepared to establish by satisfactory evidence the purpose for which the article was used. The fraudulent use of this certificate for the purpose of securing exemption from the payment or adjustment of taxes will subject the guilty party to a fine of not more than $10,000 or imprisnment for not more than five (5) years, or both, together with costs of prosecution. metals, or upon its sale or other disposition of the oil, it is required to notify the manufacturer. The fraudulent use of this certificate for the purpose of purchasing oil tax free, rather than subject to tax at the rate of 6 cents a gallon, will subject the guilty party to a fine of not more than $10,000, or imprisonment for not more than five (5) years, or both, together with the costs of prosecution. (Signature) (Title) (Address) [31 FR 6373, Apr. 27, 1966. Redesignated at 31 FR 6373, Apr. 27, 1966] § 1-11.502 State and local tax exemption forms. § 1-11.502-1 Types of evidence of immunity or exemption. Evidence appropriate to establish immunity or exemption claimed, the parties to the transaction, and the requirements of the taxing jurisdiction. Such evidence includes but is not limited to the following: (a) Copies of purchase orders, shipping documents, credit card imprinted sales slips, paid or acknowledged invoices, and similar documents created in due course which identify an agency or instrumentality of the U.S. Government as the vendee; (b) A copy of the contract or applicable portion thereof; (c) A State or local form indicating that supplies or services are for the exclusive use of the U.S. Government; (d) Any other State or locally required form, certificate, or document to establish general or specific exemption; or (e) Standard Form 1094, U.S. Tax Exemption Certificate. (Use of this form is appropriate when no other evidence is available and the amount of tax is large enough to justify its completion.) [46 FR 17560, Mar. 19, 1981] § 1-11.502-2 When evidence of immunity or exemption is to be furnished. (a) The general rules for asserting immunity or exemption from State and local taxes are outlined in the policy statements contained in § 111.301. Special rules for asserting tax immunity or exemption on imprest fund purchases are discussed in § 13.604-7. (b) To reduce uneconomical paperwork, immunity or exemptions shall not be asserted on transactions on which a particular State or local tax is $10 or less. For this purpose, a transaction is defined as a purchase, invoice, aggregate billing, or payment for multiple purchases. (c) If a reasonable basis to sustain immunity or an exemption exists, and the $10 tax threshold as discussed in paragraph (b) of this § 1-11.502-2 is exceeded, contractors, including vendors, will be furnished evidence of immunity or an exemption under: (1) Contracts containing the clauses prescribed in either § 1-11.401-1 or § 111.401-2 in accordance with the terms of those clauses; (2) Cost-reimbursement type contracts; and (3) Contracts or purchase orders which contain no provision regarding taxes if the contactor warrants that the contract price does not include the tax, or the contractor consents to a reduction in the contract price if the evidence of immunity or an exemption is accepted by the taxing jurisdiction. (d) In case of disagreement as to whether a reasonable basis exists that would sustain the immunity or exemption of a transaction, the matter should be resolved in accordance with § 1-11.000(b). [46 FR 17560, Mar. 19, 1981] Subpart 1-12.3-Contract Work Hours and Safety Standards Act (Other Than Construction Contracts) 1-12.300 Scope of subpart. Subparts 1-12.4—1-12.5—[Reserved] 1-12.601 Statutory requirement. Statutory exemptions. 1-12.602-3 Department of Labor regulations and interpretations. 1-12.603 Determinations of eligibility as manufacturer or regular dealer. 1-12.603-1 Manufacturer. 1-12.603-2 Regular dealer. 1-12.603-3 Coal dealers. 1-12.603-4 Agents. 1-12.604 Responsibilities of contracting officers. 1-12.605 Contract clause. 1-12.803-6 Adaptation of language. 1-12.803-7 Incorporation by reference. 1-12.803-8 Incorporation by operation of the Order and agency regulations. 1-12.803-9 Notice to bidders regarding preaward equal opportunity compliance reviews. 1-12.803-10 Elimination of segregated facilities. 1-12.804 Exemptions. 1-12.804-1 General. 1-12.804-2 Specific contracts. 1-12.804-3 Facilities not connected with contracts. 1-12.804-4 Effect of exemption. 1-12.804-5 Withdrawal of exemption. 1-12.805 Administration. 1-12.805-1 Duties of agencies. 1-12.805-2 Educational responsibility. 1-12.805-3 Notices to be posted. 1-12.805-4 Reports and other required information. 1-12.805-5 Compliance reviews. 1-12.805-6 Complaints. 1-12.805-7 Processing of matters by agencies. 1-12.805-8 Assumption of jurisdiction by or referrals to the Director. 1-12.805-9 Sanctions and penalties. 1-12.805-10 Disputed matters related to the equal opportunity program. 1-12.805-11 Preaward notices. Sec. 1-12.903 Department of Labor regulations. 1-12.904 Contract clauses. 1-12.904-1 Clause for Federal service contracts in excess of $2,500. 1-12.904-2 Clause for Federal service contracts not exceeding $2,500. 1-12.905 Administration and enforcement. 1-12.905-1 Responsibilities of contracting officers. 1-12.905-2 Register of wage determinations and fringe benefits. 1-12.905-3 Notice of intention to make a service contract. 1-12.905-4 Use of minimum wage determinations and fringe benefit specifications. 1-12.905-5 Additional classifications. 1-12.905-6 Notice of award. 1-12.905-7 Withholding of contract payments and contract termination. 1-12.905-8 Cooperation with the Department of Labor. 1-12.905-9 Role of the Comptroller General. 1-12.905-10 Absence of minimum wage determinations and fringe benefit specifications. 1-12.905-11 Hearings. Subpart 1-12.10-Nondiscrimination Because of Age. 1-12.1000 Scope of subpart. 1-12.1001 Policy. 1-12.1002 Implementation of policy. 1-12.1003 Handling of complaints. Subpart 1-12.11-Listing of Employment Subpart 1-12.12-Williams-Steiger Occupational Safety and Health Act of 1970 1-12.1201 Basic statute. 1-12.1202 Regulations and rulings on applicability or interpretation. Subpart 1-12.13-[Reserved] AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c). SOURCE: 29 FR 10264, July 24, 1964, unless otherwise noted. § 1-12.000 Scope of part. This part deals with general policies regarding labor, so far as they relate to procurement; sets forth certain pertinent labor laws and requirements, indicating in connection with each its applicability and any procedures thereunder; and prescribes the contract clauses with respect to each labor law or requirement. |