New mexico gross receipts tax8/2/2023 1994) (table).īecause FAR 52.229-4 unambiguously required appellant to include all taxes in the contract price, the sole argument left was for appellant to argue that it is not bound by that clause due to its own unilateral mistake. See also Allied Painting & Decorating Co., ASBCA No. In other words, “a bidder must include the amount of a tax in its bid or assume the risk of paying it without reimbursement since the duty of determining tax applicability is on the bidder.” Gibson Motor & Machine Serv., Inc., ASBCA No. He contract in this case incorporated the FAR’s standardized FEDERAL, STATE, AND LOCAL TAXES clause, which expressly warned that “he contract price includes all applicable Federal, State, and local taxes and duties.” (SOF 15) Such a clause “places upon the contractor the burden of determining which taxes are applicable and of including in his bid price a sufficient amount to cover the payment of those taxes.” Eller Constr., Inc., ASBCA No. In Holmes & Narver Constructors, Inc., ASBCA Nos. The Board stated the following rule of law: 54066, 54067 (4/9/07), which also rejected the mistake in bid claim for the omission of the GRT costs from a bid price. And, there is a second case, Ellis Environmental Group, LC, ASBCA Nos. 52429, 52551, 02-1 BCA ¶ 31,849 at 157,395, the contractor was stymied in the recovery for the GRT as a mistake in bid or misrepresentation. The case law is littered with a few bodies of contractors who have tried and failed to get a recovery for GRT costs. In particular, does your contract have the standard FAR 52.229-3 or -4 clauses on FEDERAL, STATE, AND LOCAL TAXES? Those clauses purport to say you have included all applicable state taxes in your contract price. Whether you recover can depend on the facts and your contract terms. If you are not careful, you will join a line of contractors who have run afoul of a GRT and SCA Price Adjustment clause rules. But that argument has generally not succeeded. The argument must be that they are like kind. They are not specifically listed as recoverable. However, while some specific additive payroll taxes are picked up and adjusted under the SCA, the situation with the GRT and other similar state or local taxes is fraught with uncertainties. This includes all kinds of enumerated federal and state taxes like FICA, FUTA, SUTA and worker’s compensation. Under the Service Contract Act (“SCA”), federal service contractors are supposed to get price adjustments for increases in wages and fringe benefits mandated by certain federal laws, regulations or contract. If the contractor gets additional wage or fringe benefit reimbursement, then the contractor must pay a portion of that extra revenue to the taxing authority. A GRT is a tax on extra service contract revenue imposed by the state of local government. If you are doing service business in a jurisdiction with a Gross Receipts Tax (“GRT”), like New Mexico or Guam, it is caveat emptor time. “It always seems impossible until it's done.”
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