b. Taxes. The Department is exempted from payment of State sales, use taxes and Federal excise taxes. The Grantee,

Board of Commissioners Meeting · 2026-04-21 · agenda_item

This item concerns a tax exemption agreement between a Grantee and the Department. The Department is exempt from state sales, use, and federal excise taxes. However, the Grantee must pay all applicable taxes, including state sales and use taxes on materials purchased for the contract. The Grantee is also responsible for all FICA/Social Security and other employment taxes related to this agreement. This item is currently under review as part of a Board of Commissioners Meeting. The agreement will likely involve the Grantee procuring materials and services, leading to potential opportunities for suppliers and service providers. Businesses that can offer tax-compliant material sourcing and payroll services may find opportunities. Early engagement before final contract details are settled could provide an advantage.