Ruling 89-156

Exemption - Governmental

You have requested that purchases made by X Company on your behalf be regarded as exempt from sales and use tax.

X Company is a corporation that is not exempt from tax on purchased goods and services. The sales and use taxes paid by X Company are an operating expense which is then reimbursed by the Bristol Resource Recovery Facility. Only purchases made directly by the Bristol Resource Recovery Facility are exempt from sales and use tax.

While our regulations contain an exemption for materials incorporated in tax exempt property, those provisions do not apply to the described situation. Accordingly, I must advise you that the described purchases by X Company are subject to tax.

TIMOTHY F. BANNON 

COMMISSIONER

October 26, 1989