Ruling 89-254, Exemptions - Governmental

Sales to the United States or any agency thereof, the State of Connecticut or any agency thereof or a Connecticut political subdivision or any agency thereof are exempt from the sales and use tax under section 12-412(1) of the Connecticut General Statutes.

X is a federal agency.

It is the policy of this agency not to issue an exemption permit to any entity described in the first paragraph of this letter. This letter may be used in lieu of an exemption permit.

The exemption from sales and use taxes applies only if the retailer bills the entity directly, and the bill is paid directly by such entity. The exemption does not apply when the retailer bills an employee of the entity and the bill is paid by such employee, even if such employee is subsequently reimbursed by the entity.

Please note that a completed exemption certificate (copy enclosed) must be furnished to each retailer on each sale.

LEGAL DIVISION

December 6, 1989