When are purchases by government employees, diplomats, and nonprofit employees exempt from South Carolina tax?

Plain-English summary

South Carolina Revenue Ruling #19-7 explains that an employee's official purpose alone does not determine tax exemption. The central question is who is legally making and paying for the purchase.

A federal employee's purchase is exempt when the federal government is billed directly, the employee uses a centrally billed federal card, or payment is made with a federal government check. If the employee is individually billed and later reimbursed, the sale is taxable. The same direct-purchaser principle applies to the American Red Cross and federally chartered credit unions because the ruling treats them as federal instrumentalities.

The ruling describes GSA SmartPay3 purchase, fleet, travel, tax-advantage travel, and integrated cards. Purchase, fleet, and integrated accounts were centrally billed and exempt. Travel-card treatment depended on whether the account was centrally or individually billed. The tax-advantage travel card treated lodging and rental cars as centrally billed but meals and incidentals as individually billed. Card designs and account identifiers should be checked against current federal guidance rather than assumed from this 2019 exhibit.

Foreign diplomatic and consular exemptions depend on a valid U.S. Department of State Office of Foreign Missions card and the precise privileges or restrictions shown on it. Mission cards require payment in the mission's name; personal cards are limited to the pictured individual. The ruling says these cards did not exempt telephone, utility, or gasoline taxes, and vehicle purchases required separate approval.

What this means for you

Retailers and hotels serving federal travelers

Ask whether the account is centrally or individually billed and document the exemption on the invoice or receipt. Reimbursement does not turn an employee's personal purchase into a federal purchase.

Hotels and restaurants serving diplomats

Inspect the card's mission or personal designation and any printed restrictions. Verify eligibility with the issuing authority when needed. Mission purchases must use qualifying mission payment, while the personal card permits any payment method but cannot be transferred.

State, local, school, college, and university employees

Accommodations are taxable regardless of whether the employee or government pays. Purchases of tangible property are generally taxable unless a specific item-level exemption applies.

Nonprofit organizations

Nonprofit status does not create a general sales-tax exemption. Accommodations and property purchases are taxable unless a specific § 12-36-2120 exemption applies and the organization is directly billed, uses its directly billed card, or pays by its check.

Common questions

Q: Is a federal employee's hotel exempt when the employee pays and is reimbursed?
A: No. The employee is the purchaser in an individually billed transaction.

Q: Are American Red Cross purchases exempt?
A: Direct Red Cross purchases are exempt under the ruling; employee purchases later reimbursed by the Red Cross are taxable.

Q: Does a diplomatic card exempt every purchase?
A: No. Privileges vary by card, and the ruling lists exclusions and restrictions that must be read from the card and verified when necessary.

Q: Are all nonprofit purchases exempt?
A: No. Only purchases meeting a specific statutory exemption qualify.

Citations and references

• S.C. Code Ann. § 12-36-2120(1) and (2) — diplomatic/constitutional and federal-government exemptions
• S.C. Code Ann. § 12-36-920 — accommodations and additional guest charges
• S.C. Code Ann. §§ 12-36-910, 12-36-1110, and 12-36-2110 — sales-tax rates described by the ruling
• Department of Employment v. United States, 385 U.S. 355 (1966) — American Red Cross federal-instrumentality authority cited by the ruling

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR19-7.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC REVENUE RULING #19-7
SUBJECT:

Sales to Government Employees, Foreign Diplomats, and Other Similar
Employees While on Official Business
(Sales, Use, and Accommodations Taxes)

EFFECTIVE DATE: November 30, 2018
SUPERSEDES:

SC Revenue Ruling #15-11

REFERENCE:

S.C. Code Ann. Section 12-36-2120 (2014)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public and
Department personnel. It is an advisory opinion issued to apply principles
of tax law to a set of facts or general category of taxpayers. It is the
Department’s position until superseded or modified by a change in statute,
regulation, court decision, or another Department advisory opinion.

PURPOSE OF UPDATE
The advisory opinion concerns the application of the sales and use tax to sales of tangible
personal property and sleeping accommodations to federal, state and local government
employees, foreign diplomats, federal credit union employees, and nonprofit organization
employees. The purpose of this update is to inform retailers that federal government employees
are using new credit cards to purchase tangible personal property and sleeping accommodations.
The GSA 1 SmartPay2 Charge Cards illustrated in SC Revenue Ruling #15-11 were replaced in
November 2018 with GSA SmartPay3 Charge Cards. 2
OVERVIEW
South Carolina imposes a 6% sales tax on the gross proceeds of sales of every person engaged in
the business of selling tangible personal property at retail; a 7% sales tax on charges for any
sleeping accommodations of less than 90 continuous days to the same person; a 6% sales tax on

1
2

United States General Services Administration (GSA).
The SmartPay3 contract period ends November 29, 2022, unless renewed.

1

“additional guest charges” added to a room charge for room service, laundering and dry cleaning
services, in-room movies, telephone service, and rentals of meeting rooms; and a 5% sales tax on
sales of items subject to a maximum tax. (See Code Sections 12-36-910, 12-36-920, 12-36-1110,
and 12-36-2110.)
Specific exemptions in South Carolina law exempt certain government and business related sales
from South Carolina tax. Specifically, Code Section 12-36-2120 contains sales, use, and
accommodations tax exemptions for the following:

1. Federal Government. Code Section 12-36-2120(2) exempts tangible personal property sold to
   the federal government. This exemption applies to sales to instrumentalities of the federal
   government, such as the American Red Cross 3 and a federally chartered credit union. 4 Other
   federal agencies and instrumentalities include the Department of Defense, Army, Navy, Air
   Force, United States hospitals, and federal housing authorities.
2. Foreign Diplomats. Code Section 12-36-2120(1) exempts sales of tangible personal
   property that South Carolina is prohibited from taxing by the Constitution or laws of the
   United States or South Carolina. Tax exemption privileges for foreign diplomats, consular
   officers, and staff members are generally based on two treaties: the Vienna Convention on
   Diplomatic Relations and Vienna Convention on Consular Relations. These treaties have
   been ratified by the United States and are the supreme law of the land under Article VI of
   the U.S. Constitution. Not all foreign missions and their personnel are entitled to tax
   exemption; tax exemption privileges are based on reciprocity and are only granted to a
   foreign official in the United States if United States and Consular personnel receive the
   equivalent privileges in that country.
3. Nonprofit Organizations. Code Section 12-36-2120 provides several exemptions for sales to
   certain nonprofit organizations, including but not limited to, sales of food and children’s
   clothing to nonprofit organizations that will provide such food or clothing free of charge to
   the elderly, disabled, or needy. Code Section 12-36-2120 also exempts tangible personal
   property sold to charitable hospitals predominately serving children exempt under Code
   Section 12-37-220 where care is provided without charge to the patient. 5
   Note: Code Section 12-36-2120(41) exempts items sold by organizations exempt from ad
   valorem property tax under Code Section 12-37-220A(3) and (4) and B(5), (6), (7), (8), (12),
   (16), (19), (22), and (24), if the net proceeds are used exclusively for exempt purposes and no
   benefit inures to any individual. 6
   While it is clear that South Carolina is not permitted to impose a tax directly on the federal
   government, questions often arise when a federal government employee is making work related
   purchases. Similar questions arise about the taxation of sales of tangible personal property,
   accommodations, and food when a foreign diplomat stationed in the United States, or a state
   3

See Department of Employment, et.al. v. United States, 385 U.S. 355 (1966), and SC Information Letter #89-34.
See South Carolina Attorney General Opinion #S-OAG-59.
5
For specific information about the requirements of these exemptions, see Code Section 12-36-2120.
6
For additional information on the exemption for sales by nonprofit organizations, see SC Revenue Ruling #12-3
and SC Revenue Procedure #03-6 (or subsequently issued advisory opinions).
4

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employee, or nonprofit employee is making purchases in South Carolina. In general, the
applicability of the sales and use tax with such employees depends upon whether the government
or nonprofit organization is making the purchase or the employee.
This advisory opinion provides guidance concerning the taxability of sales to: (1) employees of
the federal government, including instrumentalities of the federal government, such as the
American Red Cross or federal credit unions, (2) foreign diplomats (including Taipei officials),
or (3) other similar employees, such as employees of nonprofit organizations or state
governments and colleges.
Note: This document addresses South Carolina’s state sales and use taxes and local sales and use
taxes that are collected by the Department on behalf of local governments. The local sales and
use taxes imposed by South Carolina counties that are collected by the Department generally do
not apply to sales which are exempt from the State sales and use tax (sales of unprepared food
may be subject to local sales and use taxes in certain counties). Other local sales and use taxes
that are collected directly by the county or municipality, such as a local hospitality tax on the sale
of prepared meals and beverages or a local accommodations tax, are not addressed in this
document.
I. FEDERAL GOVERNMENT
A. Taxation of Sale. The taxability of a transaction involving the federal government depends
upon whether the sale is made to the federal employee or the federal government. If the sale
is not taxable, the Department does not require a tax exempt form, such as the ST-8,
“Exemption Certificate (Single Sale Only),” to be provided to the retailer to receive the
exemption. Retailers should document the tax exemption information on the invoice or
transaction receipt.

1. Taxable Sale – A Sale between Retailer and Federal Employee. If the federal
   employee is billed directly for the purchase and reimbursed by the U.S. Government,
   the sale is subject to South Carolina sales and use tax, unless the sale is otherwise
   exempt (e.g., sale of a newspaper).
2. Exempt Sale – A Sale between Retailer and Federal Government. A sale to a federal
   government employee conducting official business is exempt from tax if:
   a. the federal government is billed directly,
   b. the federal employee uses a credit card that is billed directly to the federal
   government (see discussion below), or
   c. the federal employee pays with a federal government check.
   General Services Administration (“GSA”) SmartPay Cards. The General Services
   Administration (“GSA”), through the GSA SmartPay program, has contracted with
   Citibank and U.S. Bank to provide charge card services to federal government agencies
   and organizations for conducting official business.

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The GSA SmartPay program consists of different business lines (i.e., purchase, fleet,
travel, and integrated). These charge cards can be identified by their unique prefixes and
account numbers, government designed artwork, and wording that indicates that the card is
for official purchases for the U.S. Government. See Exhibit A for a summary of federal
government credit card account types, logos, account numbers, tax exemption and billing
provisions, and card samples. For more detailed information, see smartpay.gsa.gov.
The SmartPay cards currently used and the taxability of purchases made with each card
is summarized below. The taxability is dependent on the billing method – whether the
card is “centrally” billed, 7 “individually” billed, 8 or a combination billing.

1. Purchase Charge Card. This card is used for purchasing supplies and services to
   support U.S. Government operations. It is a centrally billed account. Accordingly,
   official purchases made with these cards are exempt from South Carolina sales and
   use taxes.
2. Fleet Charge Card. This card is used for government vehicle fuel and maintenance
   requirements. It is a centrally billed account. Accordingly, official purchases made
   with these cards are exempt from South Carolina sales and use taxes.
3. Travel Charge Card. This card is used for official government travel and travel
   related expenses. It may be a centrally billed account or an individually billed
   account; the sixth digit identifies whether the account is centrally or individually
   billed. Official purchases made with this card that are centrally billed are exempt
   from South Carolina sales and use taxes and official purchases made with this card
   that are individually billed are subject to South Carolina sales and use taxes.
4. Tax Advantage Travel Card. This card is used for official government travel and
   travel related expenses and is a centrally billed/individually billed account,
   depending on the item purchased. If the card is used for lodging or rental car
   expenses, then the account is centrally billed and these official purchases made
   with this card are exempt from South Carolina sales and use taxes. If the card is
   used for other types of travel transactions, such as meals and incidentals, then the
   account is individually billed and these purchases are subject to South Carolina
   sales and use taxes.
5. Integrated Charge Card. This card combines two or more of the above business
   lines (i.e., includes fleet, travel, and/or purchase functionality and offers a single
   card for all purchases). It is a centrally billed account. Accordingly, official
   purchases made with these cards are exempt from South Carolina sales and use
   taxes.
   7

Centrally Billed Account. A charge card account in which all charges are billed directly to the federal
government and paid directly by the federal government to the issuing bank. This card is the sole responsibility
of the U.S. Government.
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Individually Billed Account. A charge card account in which all charges are paid directly by the
cardholder/federal employee to the issuing bank; the federal employee is then reimbursed by the federal
government. This card is the sole responsibility of the employee (i.e., the federal government is not responsible
if the cardholder fails to pay).

4

Other Federal Government Credit Cards. Federal employees could be issued a credit
card other than those described in Exhibit A for use in conducting official business. The
taxability of the transaction depends upon whether the sale is made to the federal
government (i.e., the federal government is directly billed) or to the federal employee.
(See further explanation above in Section A). If the sale is not taxable, the retailer
should document the tax exemption information on the invoice or transaction receipt.
B. American Red Cross Employee. Since the American Red Cross is an instrumentality of the
federal government, the taxability of a transaction involving the American Red Cross
depends upon whether the sale is made to the employee or to the Red Cross. If the sale is not
taxable, the Department does not require a tax exempt form, such as the ST-8, “Exemption
Certificate (Single Sale Only),” to be provided to the retailer to receive the exemption.
Retailers should document the tax exemption information on the invoice or transaction
receipt.

1. Taxable Sale – A Sale between Retailer and American Red Cross Employee. If the
   employee is billed directly and reimbursed by the American Red Cross, the sale is
   subject to South Carolina sales and use tax.
2. Exempt Sale – A Sale between Retailer and American Red Cross. A sale to a Red
   Cross employee conducting official business is exempt from tax if:
   a. the Red Cross is billed directly,
   b. the employee uses a credit card that is billed directly to the Red Cross, or
   c. the employee pays with a Red Cross check.
   C. Federal Credit Union Employee. Since federal credit unions are instrumentalities of the
   federal government, the taxability of a transaction involving a federal credit union depends
   upon whether the sale is made to the employee or to the federal credit union. If the sale is not
   taxable, the Department does not require a tax exempt form, such as the ST-8, “Exemption
   Certificate (Single Sale Only),” to be provided to the retailer to receive the exemption.
   Retailers should document the tax exemption information on the invoice or transaction
   receipt.
3. Taxable Sale – A Sale between Retailer and Federal Credit Union Employee. If the
   employee is billed directly and reimbursed by the federal credit union, the sale is
   subject to South Carolina sales and use tax.
4. Exempt Sale – A Sale between Retailer and Federal Credit Union. A sale to a federal
   credit union employee conducting official business is exempt from tax if:
   a. the credit union is billed directly,
   b. the employee uses a credit card that is billed directly to the credit union, or
   c. the employee pays with the credit union’s check.
   Note: This exemption does not apply to an employee who works for an association that
   represents various federal credit unions if the association pays the charges since the
   association is not a federal credit union.

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II. FOREIGN DIPLOMAT
Part A – General Rules
Taxation of Sale. Pursuant to Code Section 12-36-2120(1), sales to foreign diplomats are
exempt from tax in accordance with the type of card issued by, and the level of exemption
authorized by, the United States Department of State’s Office of Foreign Mission. The Office
of Foreign Mission issues “Diplomatic Tax Exemption Cards” to eligible foreign diplomatic
and consular missions and in most cases to their personnel and eligible family members
located in the United States. Such cards are used to authorize the exemption of state and local
sales tax, restaurant/meal tax, lodging/accommodation tax, and similar taxes in South
Carolina. See Exhibit B for samples of the tax exemption cards and the tax exemption
provisions of each card. Note: The tax exemption card, however, is not valid for exemption
from taxes on telephones, other utilities, or gasoline purchases. For purchases of vehicles, the
Office of Foreign Mission must approve the sales tax exemption.
In instances where the diplomatic mission or agent is denied the tax exemption by the Office
of Foreign Mission, the vendor should collect any tax that is normally imposed at the time of
purchase. Questions concerning South Carolina sales and use tax requirements should be
directed to the Department of Revenue. Questions regarding the eligibility of diplomatic or
consular officers for sales and use tax exemption should be directed to the Office of Foreign
Missions at state.gov/ofm or the number on the card.
Diplomatic Tax Exemption Cards. The Diplomatic Tax Exemption Cards feature one of
four images of animals (owl, buffalo, eagle, or deer) that are native to North America. Each
image provides the retailer with (1) a visual cue of tax exemption privileges and (2) an
indication of whether the card is intended for official or personal purchases.

1. “Mission” Tax Exemption Card (Contains an owl or buffalo image). This card is used by
   foreign diplomatic and consular missions to exempt official purchases necessary for the
   operation of the diplomatic or consular mission from South Carolina state and local sales
   and use taxes, accommodations taxes, and similar taxes. Other features of the card are:
   ▪

Cards with an “owl” image allow a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

Cards with a “buffalo” image subject the cardholder/mission to some degree of
restriction from certain purchases or amounts as identified on the face of the card.

▪

The person whose photo appears on the card is the mission’s point of contact and is
the person responsible for ensuring appropriate use of the card. The individual does
not need to be present when purchases are made.

▪

All purchases must be paid for with a check, credit card, or wire transfer transaction
in the name of the mission. The exemption is not allowed if payment is by cash or
personal check.

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2. “Personal” Tax Exemption Card (Contains an eagle or deer image). This card is used by
foreign diplomatic or consular mission members to exempt their personal purchases in
South Carolina from South Carolina state and local sales and use taxes, accommodations
taxes, and similar taxes. Other features of the cards are:
▪

Cards with an “eagle” image allow a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

Cards with a “deer” image subject the cardholder/mission to some degree of
restriction from certain purchases or amounts as identified on the face of the card.

▪

This card can be used only by the individual named and pictured on the card. It is not
transferable to another person, family member, or friend.

▪

There is no restriction on the type of payment when using this card.

▪

This card does not exempt purchases via the Internet or mail order catalog from
applicable state and local taxes.

Part B – Special Rules for Taipei
Taxation of Sale. The American Institute in Taiwan issues tax exemption cards to the Taipei
Economic and Cultural Representative Office (TECRO), the Taipei Economic and Cultural
Offices (TECOs), their eligible personnel, and their qualifying dependents. These cards
authorize exemptions from state and local sales tax, restaurant/meal tax, lodging/
accommodations tax, and similar taxes in South Carolina. See Exhibit C for samples of the
tax exemption cards and the tax exemption provisions of each card.
Note: The tax exemption card, however, is not valid for exemption from taxes on telephones,
other utilities, gasoline purchases, or purchases of vehicles. In instances where the purchaser
is denied the tax exemption by the American Institute in Taiwan, the vendor should collect
any tax that is normally imposed at the time of purchase. Questions concerning South
Carolina sales and use tax requirements should be directed to the Department of Revenue.
Vendors should verify the card’s validity at https://ofmapps.state.gov/tecv/ or by calling the
phone number on the back of the tax exemption card. Questions regarding eligibility for the
sales and use tax exemption should be directed to the American Institute in Taiwan at 703525-8474.
Taipei Tax Exemption Cards. The Taipei Tax Exemption Cards feature one of two images
of animals (owl or eagle) that are native to North America. Each image provides the retailer
with (1) a visual cue of tax exemption privileges and (2) an indication of whether the card is
intended for official or personal purchases.

1. Taipei Official Tax Exemption Card (Contains an owl image). This card is used by the
   Economic and Cultural Representative Office or a Taipei Economic and Cultural Office
   to exempt official purchases necessary for its operation from South Carolina state and

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local sales and use taxes, accommodations taxes, and similar taxes. Other features of the
card are:
▪

The card with the “owl” image allows a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

The person whose photo appears on the card is the office’s point of contact and is the
person responsible for ensuring appropriate use of the card. The individual does not
need to be present when purchases are made.

▪

All purchases must be paid for with a check, credit card, or wire transfer transaction
in the name of the Taipei Economic and Cultural Representative Office or a Taipei
Economic and Cultural Office. The exemption is not allowed if payment is by cash or
personal check.

2. “Personal” Tax Exemption Card (Contains an eagle image). This card is used by eligible
   personnel and their dependents to exempt their personal purchases in South Carolina
   from South Carolina state and local sales and use taxes, accommodations taxes, and
   similar taxes. Other features of the card are:
   ▪

This card can be used only by the individual named and pictured on the card. It is not
transferable to another person, family member or friend.

▪

There is no restriction on the type of payment when using this card.

▪

The card does not exempt purchases via the Internet or mail order catalog from
applicable state and local taxes.

III. TAXATION OF SALES TO STATE EMPLOYEES OR NONPROFIT
ORGANIZATION EMPLOYEES
A. State or Local Government Employees. Sales of accommodations to any state or local
government employee are subject to the sales tax on accommodations regardless of whether
the state or local government or the employee pays for the charges. Sales and use taxes
generally apply on purchases of tangible personal property, unless an exemption applies to
the specific purchase (e.g., purchase of a newspaper).
B. School District, College, and University Employees. Sales of accommodations to any school
district, college or university employee are subject to the sales tax on accommodations
regardless of whether the state or local government or the employee pays for the charges.
Sales and use taxes generally apply on purchases of tangible personal property, unless an
exemption applies to the specific purchase (e.g., purchase of a textbook).

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C. Sales to Nonprofit Organizations. Sales of accommodations to any nonprofit organization
employee are subject to the sales tax on accommodations regardless of whether the nonprofit
organization or the employee pays for the charges, unless an exemption under Code Section
12-36-2120 applies. Sales to a nonprofit organization of tangible personal property for its
own use (e.g., computers, furniture, office supplies), including items that the nonprofit
organization will donate or otherwise provide free of charge as part of its charitable purpose
or mission, are subject to the sales and use tax unless an exemption under Code Section 1236-2120 applies to the specific purchase.
Code Section 12-36-2120 provides several exemptions for sales to certain nonprofit
organizations, including but not limited to, sales of food and children’s clothing to
nonprofit organizations that will provide such food or clothing free of charge to the
elderly, disabled, or needy. Code Section 12-36-2120 also exempts tangible personal
property (including accommodations) sold to charitable hospitals predominately serving
children exempt under Section 12-37-220, where care is provided without charge to the
patient. An exemption applies if the sale meets all the requirements of the specific
exemption and:
a. the nonprofit organization is billed directly,
b. the nonprofit organization employee uses a credit card that is billed directly to
the nonprofit organization, or
c. the nonprofit employee pays with the nonprofit organization’s check.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
September 13
, 2019
Columbia, South Carolina

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EXHIBIT A - Federal Government Employees
This chart summarizes the taxability of sales transactions with the federal government or federal
employees using the GSA SmartPay3 program and the unique prefixes and account numbers on each
card. See the next page for a sample of the types of credit cards in use.
Note: Other federal government credit cards may be issued to employees for use in conducting official
business that differ from those described below (e.g., the card does not have the SmartPay 3 logo or a
unique design, or the card contains another logo). 9 The taxability of the transaction depends upon
whether the sale is made to the federal government (i.e., the federal government is directly billed) or to
the federal employee.
Purchase
Fleet Card
Travel Card
Tax Advantage Integrated
Card
Travel Card
Card
MasterCard
MasterCard
MasterCard
MasterCard
MasterCard
1st Four
5565
or
5568
5563,
5565,
or
5565
or
5568
5565
or
5568
5565
Numbers on
5568
the Card
6th digit indicates
Visa
6th digit is 5
billing method (see
4486 or 4614
below)
Visa
Voyager
Visa
Visa
Visa
4614 or 4716 7088
4486 or 4614
4486, 4615, or
4614
4716
Wright
Express
6th digit is 5
5565, 6900, or
7071
Red with an Green with a
Blue with a jet
Gray with a car Gold with a
Card Design
eagle
highway
and hotel
globe
(optional) 10
Centrally
Centrally
Centrally billed if
Centrally billed Centrally billed
Billing
billed
billed
6th digit is 0, 6, 7, 8, for lodging or
Method
or 9.
rental car
purchases.
Individually billed if
6th digit is 1, 2, 3, or Individually
4.
billed for all
purchases other
than lodging or
rental car.
Exempt from Exempt from
Depends on billing
Depends on
Exempt from
Tax
sales and use sales and use
method above;
billing method
sales and use
Exemption
tax
centrally billed are
above; centrally tax
Applicability tax
exempt; individually billed are
billed are taxable.
exempt;
individually
billed are
taxable.

9

For example, the USPS Uniform Allowance Program uses a card issued by Citibank with the first four digits of
4715. Since this account is centrally billed, official purchases using this card are exempt from sales and use tax.
10
Some agency cards do not contain a card design.

10

Sample - SmartPay 3 Charge Cards
Used by Federal Government Employees
Fleet Card

Purchase Card

Travel Card

Integrated Card

Tax Advantage Travel Card

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EXHIBIT B – Foreign Diplomats
U.S. DEPARTMENT OF STATE – OFFICE OF FOREIGN MISSION
DIPLOMATIC TAX EXEMPTION CARDS – SAMPLE CARDS
1: Mission Tax Exemption Cards
Diplomatic Tax Exemption Cards that are labeled as “Mission Tax Exemption — Official
Purchases Only” are used by foreign diplomatic and consular missions to obtain exemption
from sales, occupancy, restaurant/meal, and other similar taxes imposed on their official
purchases in the United States necessary for the operation of the diplomatic or consular
mission. This card will have an owl or buffalo symbol indicating the specific type of tax
exemption. The person whose photo appears on such cards is the diplomatic or consular
mission’s point of contact and is the person responsible for ensuring the appropriate use of the
card. This individual does not need to be present when purchases are made. Note: All
purchases authorized for mission tax exemption must be paid for with a check or credit card
bearing the name of the associated diplomatic or consular mission.

front

back

front

back

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OWL — Cards with this image are intended to be used solely in connection with
official purchases; the cardholder/mission is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes. Hotel stays for the
purpose of tourism, medical treatment, or leisure travel are not considered
necessary for the mission’s operations and functions.
BUFFALO — Cards with this image are intended to be used solely in connection
with official purchases; the cardholder/mission is subject to some degree of
restriction on exemption from sales, occupancy, restaurant/meal, and other similarly
imposed taxes. Hotel stays for the purpose of tourism, medical treatment, or leisure
travel are not considered necessary for the mission’s operations and functions.
2: Personal Tax Exemption Cards
Diplomatic Tax Exemption Cards that are labeled as “Personal Tax Exemption” are used by
eligible foreign diplomatic and consular mission members to obtain exemption from sales,
occupancy, restaurant/meal, and other similar taxes imposed on their personal purchases in the
United States. This card will have an eagle or deer symbol indicating the specific type of tax
exemption of the cardholder. The card is intended to be used solely for the benefit of the
individual identified and pictured on the card. The use of a personal Diplomatic Tax Exemption
Card is not transferable and cannot be loaned to a family member or friend, regardless of his/her
eligibility for exemption from taxation. There is no restriction on the form of payment
associated with using a personal Diplomatic Tax Exemption Card.

back

front

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front

back

EAGLE — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is eligible for exemption from sales, occupancy,
restaurant/meal, and other similarly imposed taxes.
DEER — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is subject to some degree of restriction on
exemption from sales, occupancy, restaurant/meal, and other similarly imposed
taxes.

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EXHIBIT C – Taipei Exemption Cards
AMERICAN INSTITUTE IN TAIWAN
TAX EXEMPTION CARDS – SAMPLE CARDS
1: Official Tax Exemption Cards Used by Taipei Economic and Cultural Representative
Office and Taipei Economic and Cultural Offices
Tax Exemption Cards that are labeled as “Official Tax Exemption – Official Purchases
Only” are used by the Taipei Economic and Cultural Representative Office or the Taipei
Economic and Cultural Offices to obtain exemption from sales, occupancy, restaurant/meal,
and other similar taxes imposed on purchases in the United States necessary for the office’s
operations and functions. Hotel stays for the purpose of tourism, medical treatment, or leisure
travel are not considered necessary for official operations or functions. This card will have an
owl symbol indicating the specific type of tax exemption. The person whose photo appears on
such cards is the point of contact. This individual does not need to be present when purchases
are made. Note: All purchases authorized for the official tax exemption must be paid for with
a check, credit card, or wire transfer in the name of the foreign government, the Taipei
Economic and Cultural Representative Office, or the Taipei Economic and Cultural Offices.

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OWL — Cards with this image are intended to be used solely in connection with
official purchases; the cardholder/office is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes.

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2: Personal Tax Exemption Cards
Tax Exemption Cards that are labeled as “Personal Tax Exemption” are used by eligible
personnel and their dependents to obtain exemption from sales, occupancy, restaurant/meal, and
other similar taxes imposed on their personal purchases in the United States. This card will have
an eagle symbol. The card is intended to be used solely for the benefit of the individual
identified and pictured on the card. The use of a personal Tax Exemption Card is not
transferable and cannot be loaned to a family member or friend, regardless of his/her eligibility
for exemption from taxation. There is no restriction on the form of payment associated with
using a personal Tax Exemption Card.

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EAGLE — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes.

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