As prescribed in 29.2 (93), insert the following clause:
FEDERAL EXCISE TAX, STATE AND LOCAL TAXES EXCLUDED FROM CONTRACT PRICE
(SEP 2008) - DLAD
(a) Federal Excise Taxes excluded. Notwithstanding paragraph (b) of FAR 52.229-3, Federal, State, and Local Taxes -
All contract prices for Benzol, Benzene, and Naphtha exclude the special excise tax imposed by 26 USC Section 4041(a)(2) of the Internal Revenue Code.
(b) State and Local Taxes excluded. Notwithstanding paragraph (b) of FAR 52.229-3, Federal, State, and Local Taxes -
All contract prices exclude such of the following state and local taxes as are imposed on the supplies furnished hereunder: (1) Lubricating Oil Taxes, (2) Naphtha, Benzol, or Benzene Taxes, and (3) California Sales and Use Tax.
(c) Tax Reimbursement by Government:
The Government will reimburse the contractor for the amount of any such Federal excise, state or local tax from which the Government, the contractor, or the transaction covered by this contract is not exempt (and from which no exemption is otherwise available) and the contractor is, therefore, required to pay on supplies furnished hereunder. As used in the preceding sentence, the term "Such Federal Excise, State or Local Tax" means only (1) Federal Excise Taxes specifically excluded from the contract price by a provision of this contract and (2) state and local taxes excluded from the contract price pursuant to the provisions of paragraph (b) of this clause. Invoices or vouchers shall set forth the amount of any such taxes as a separate item and shall identify the particular tax involved. Whenever reimbursement of a state or local tax may be required pursuant to this paragraph (c), the contractor shall take action as directed by the Contracting Officer, and the contract price shall be equitably adjusted to cover the costs of such action, including any interest, penalty, and reasonable attorney's fees.
(End of Clause)
