Today Government Inc. would like to salute Raytheon.
In fact, let's give them a gold star for innovative efforts at bolstering the bottom line.
According to the Boston Globe, the Waltham, Mass. firm tried hard to pursuade state tax officials that it should not have to pay sales tax on a wide array of items because it does most of its contracting work for the federal government.
What items? Among other things, they include toilet paper; a juke box; promotional gifts such as golf umbrellas, pins, and key chains; snow removal; and catering service, the Globe tells us.
"The company is already exempt from paying sales taxes on many items it purchases specifically for the federal government, such as computer chips and metal sheets used to make missiles. But Raytheon said it should also be free from paying state sales taxes on its general overhead expenses, such as pads of paper used by company engineers to jot down notes," the Globe reported.
"Specifically, Raytheon estimated that more than 81 percent of its work was for the US government in 2001 and 2002. Therefore, the company told the state tax board, it deserved a refund of 81 percent of the sales and use taxes it paid on general overhead expenses during those years in Massachusetts - about $700,000, plus interest."
This isn't the company's first try at this. As in the past, the state said no to the request.
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Posted by: novahorn | August 29, 2008 3:07 PM
Posted by: CarmanK | August 29, 2008 4:53 PM
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