Item Coversheet

County of El Paso
Agenda Item Details


 

Item Title:Purchasing - Authorization to sign Federal Excise Tax Exemption Cert. and State Sales Tax Cert.
Submitted By:Debra Carrejo, CPPO, CPPB, Purchasing Agent, Purchasing Department (915) 546-2048
Subject:Discuss and take appropriate action to authorize the Purchasing Agent to sign Federal Excise Tax Exemption Certificates and State Sales Tax Certificates.
Background:
  • The Certificate of Exemption from Federal Excise Tax (FET) allows identified State/Local Governments to declare exemption from taxes imposed by Section 4251 of the Internal Revenue Code, upon purchase of qualified equipment such as tires, trucks and road equipment.
  • The Texas Sales Tax Exemption Certificate allows identified State of Texas/Local Governments to declare exemption for a majority purchases from taxes imposed by the State, upon purchase of qualified exempted items.

 

Providing the signed FET Exemption Certificate to the contracted vendor upon approved purchase via contract or purchase order can save the County of El Paso thousands of dollars otherwise paid in a purchase. Routinely, the Texas Sales Tax Exemption forms also save money and are provided to El Paso County vendors for their own record-keeping and verification to the State Comptroller's Office.

 

Multiple verification forms required signatures on a yearly basis. Since these forms are provided on or after an approved purchase has been submitted to the vendor, either by purchase order or signed contract, the authorization to sign the forms verifying the tax exempt status of the agency is routinely delegated to the chief purchasing official within the agency.

 

The Purchasing Agent is requesting authorization to sign the forms to expedite the procurement and delivery processes and allow the County to obtain maximum tax benefits whenever purchasing affected materials or equipment.

Fiscal Impact:N/A
Recommendation:Discuss and take appropriate action to authorize the Purchasing Agent to sign Federal Excise Tax Exemption Certificates and State Sales Tax Certificates.
Prior Action:N/A
Strategic Plan:..
Strategic Plan Information:

ATTACHMENTS:
DescriptionUpload Date
Tax Exemption Backup1/24/2019