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DSCR

DSCR I182: FEDERAL EXCISE/STATE/LOCAL TAXES EXCLUDED

I182   52.229-9G02   FEDERAL EXCISE, STATE AND LOCAL TAXES   DSCR (MAR 1998)
AND                  EXCLUDED FROM CONTRACT PRICE 
I29F30


    (a)  Federal Excise Taxes Excluded.  Notwithstanding paragraph (b) 
of the clause entitled 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.