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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.229-1 State and Local Taxes.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause says the contract price does not include State and local taxes that are levied on or measured by the contract or sales price of the services or completed supplies under the contract. It matters because the Contractor must list those excluded taxes separately on invoices, and the Government will either pay them or provide evidence to support an exemption.

Applies to: Contractors under contracts that include this clause

What it requires

  • State separately on its invoices taxes excluded from the contract price

Key terms: State and local taxes · contract price · invoices · exemption

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 29.401-1, insert the following clause:

State and Local Taxes (APR 1984)

Notwithstanding the terms of the Federal, State, and Local Taxes clause, the contract price excludes all State and local taxes levied on or measured by the contract or sales price of the services or completed supplies furnished under this contract. The Contractor shall state separately on its invoices taxes excluded from the contract price, and the Government agrees either to pay the amount of the taxes to the Contractor or provide evidence necessary to sustain an exemption.

(End of clause)

Sections it refers to

  • 29.401-1 Indefinite-delivery contracts for leased equipment.

Sections that refer to it

  • 29.401-1 Indefinite-delivery contracts for leased equipment.

← 52.228-17 Individual Surety—Pledge of Assets (Bid Guarantee). · 52.229-2 North Carolina State and Local Sales and Use Tax. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.229-1 State and Local Taxes · SpendQuery