# DLAD PART 29 – TAXES

- SUBPART 29.2 – FEDERAL EXCISE TAXES
- SUBPART 29.3 – STATE AND LOCAL TAXES

- 29.305 (90) Contract clause for procurement of benzol, benzene, naphtha, or lubricating oil.

- SUBPART 29.4 – CONTRACT CLAUSES

- 29.401 Domestic contracts – provisions and clauses.

- 29.401-3 Federal, state, and local taxes.

- 29.490 Kentucky sales and use tax - application for exemption.

PART 29 – TAXES

TABLE OF CONTENTS

SUBPART 29.2 – FEDERAL EXCISE TAXES

29.2 Clauses.

SUBPART 29.3 – STATE AND LOCAL TAXES

29.3 Clauses.

SUBPART 29.4 – CONTRACT CLAUSES

29.4 Contract clauses.

29.401 Domestic contracts – provisions and clauses.

29.401-3 Federal, state, and local taxes.

29.490 Kentucky sales and use tax - application for exemption.

SUBPART 29.2 – FEDERAL EXCISE TAXES

29.2 Clauses.

29.2 (90) Supplies for export on a federal excise tax-inclusive basis.

Use clause 52.229-9003, Excise Tax Included (No Proof of Export), in solicitations and awards when acquiring supplies for export on a federal excise tax-inclusive basis.

29.2 (91) Clause for exemption from Federal manufacturers’ excise tax.

Use clause 52.229-9004, Federal Excise Tax, in solicitations and awards for Construction and Equipment items when exemption from Federal Manufacturers' Excise Tax is taken based on exportation to a foreign country or shipment to a possession of the U.S. or Puerto Rico. When this exemption is taken, the following notation must be inserted in the contract or purchase order immediately following the description of the supplies: "For Export or Shipment to a Possession".

29.2 (93) Clause for procurement of benzol, benzene, naphtha, or lubricating oil.

Use clause 52.229-9005, Federal Excise,State, Local Taxes Excluded from Contract Price, in solicitations and awards for non-commercial packaged petroleum products when procuring benzol, benzene, naphtha, or lubricating oil.

SUBPART 29.3 – STATE AND LOCAL TAXES

29.3 Clauses.

29.305 (90) Contract clause for procurement of benzol, benzene, naphtha, or lubricating oil.

Use clause, 52.229-9006, Tax exemption forms, in solicitation and awards for packaged petroleum products when procuring benzol, benzene, naphtha, or lubricating oil.

SUBPART 29.4 – CONTRACT CLAUSES

29.4 (90) Contract clause for tax-free ethyl or denatured alcohol.

Use clause 52.229-9007, U.S. Department of Treasury Tax-Free Ethyl and Denatured Alcohol Permit, in solicitations and awards for tax-free ethyl or denatured alcohol. The contractor must have the proper Department of Treasury permit to be eligible.

29.401 Domestic contracts – provisions and clauses.

29.401-3 Federal, state, and local taxes.

(90) Use 52.229-9001, United States (U.S.) Department of Treasury Tax-Free Ethyl and Denatured Alcohol Permits, in Solicitations for tax-free ethyl or denatured alcohol. (Reference: U.S. Department of Treasury letter, 22 Apr 75) The contractor must have the proper Department of Treasury permit to be eligible.

(91) Use 52.229-9002, Tax Exemption Forms, with packaged petroleum products when procuring benzol, benzene, naphtha, or lubricating oil.

29.490 Kentucky sales and use tax - application for exemption.

(a) The commonwealth of Kentucky provides procedures for obtaining an exemption to the Kentucky sales and use tax for sales made directly to the Federal Government under Kentucky regulation 103 KAR 30:235. DLA activities may apply for this exemption. Requests for copies of the application forms should be directed to:

Department of Revenue

Sales and Severance Tax Division

Annex Building

Frankfort, Kentucky 40601

Copies are also available from the Department's regional offices.

(b) The regulation and instructions on the reverse side of the application form require each administrative division within a Federal unit, which makes purchases in its own name, to file a separate application. Kentucky will then issue an exemption authorization letter to that unit. Each contractor in Kentucky doing business with that unit will then request a copy of this exemption authorization letter. Once DLA furnishes a copy to contractors, they should retain it in their files for use in connection with claiming deductions in their state sales and use tax returns with respect to sales to the Federal Government.

(c) Solicitations which anticipate responses from firms in the Commonwealth of Kentucky should include the clause at 52.229-9000.