52.229-5 Taxes - Contracts Performed in U.S. Possessions or Puerto Rico.

(APR 1984)

A substitute DLA Energy (formerly DESC) clause was developed to simplify, consolidate and tailor the FAR clauses to petroleum, petroleum related services, and coal. The FAR clauses only address after imposed/after relieved Federal taxes and do not address such circumstances for state and local taxes applicable to DLA Energy (formerly DESC) procurement. The FAR clauses also require contract prices inclusive of all applicable Federal, State and local taxes. This is not acceptable to DLA Energy (formerly DESC) since some taxes at all levels are excluded from certain fuel products under Government use criteria in the Internal Revenue codes.