A recent sales tax ruling out of Louisiana provides an excellent, and unfortunate, example of a government contractor thinking they are an agent of the government and therefore exempt from tax on its purchases of materials. On February 12, 2014, the Louisiana Court of Appeal affirmed an approximately $400,000 sales tax assessment on the purchases of materials made by a government contractor performing a construction project. Bridges v. Cepolk Corporation, Case No. 13-1051, La. Ct. App. 3rd Cir., 2/12/2014.
The main issue in the case, which is one that is relevant for government contractors in most …read more
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