Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

Treasury Regulations · 26 CFR

§ 48.4041-15. Sales to States or political subdivisions thereof.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 4041

Cite as 26 CFR § 48.4041-15

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
March 31, 1978 by T.D. 7536
Last amended
January 2, 1986 by T.D. 8066
Issued under
26 U.S.C. § 4041
Length
393 words · about 2 min to read
Cross-references
cites 1 Code section and 0 regulations; cited by 0
(a) Application of exemption. The taxes imposed by section 4041 do not apply in the case of a sale of any liquid by any person for the exclusive use of any State or any political subdivision thereof, the District of Columbia, or in the case of the use of any liquid by any State or any political subdivision thereof, or the District of Columbia, as a fuel in a motor vehicle, motorboat, or aircraft.
(b) Evidence required to establish exemption. Any vendor claiming exemption under this section shall be prepared to produce evidence that will establish the right to exemption from the tax imposed by section 4041. Generally, orders or contracts of a State or a political subdivision thereof, or the District of Columbia, when signed by an authorized officer thereof will be accepted in support of the exemption. However, in the absence of such orders or contracts, a certificate signed by such an authorized officer that the liquid sold was purchased for the exclusive use of a State or political subdivision thereof, or the District of Columbia, will be acceptable. The certificate shall be in substantially the following form:
Exemption Certificate

(For use by States and local governments. (section 4041(g)(2) of the Internal Revenue Code).)

Date ____________________, 19____.

I hereby certify that I am ______________ of ______________ (State or local government) that I am authorized to execute this certificate; and that

(Check applicable type of certificate)

______the liquid or liquids specified in the accompanying order, or on the reverse side hereof, (or)

______all orders placed by the purchaser for the period commencing __________ (Date) and ending __________ (Date) (period not to exceed 12 calendar quarters) are, or will be, purchased from __________ (Name of vendor) for the exclusive use of __________ (Governmental unit) of ____________________ (State or local government).

I understand that the exemption from tax in the case of sales of liquids under this exemption certificate is limited to the sale of articles purchased for the exclusive use of a State, etc. I understand that the fraudulent use of this certificate for the purpose of securing this exemption will subject me and all parties making such fraudulent use of this certificate to a fine of not more than $10,000, or to imprisonment for not more than 5 years, or both, together with costs of prosecution.

Signature ____________________

Address ____________________

[T.D. 7536, 43 FR 13516, Mar. 31, 1978. Redesignated by T.D. 8066, 51 FR 14, Jan. 2, 1986]

Other regulations under § 4041

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Amended by T.D. 8066 (51 FR 14)
  2. Issued by T.D. 7536 (43 FR 13516)

Where it sits in 26 CFR

  1. Subchapter D Miscellaneous excise taxes
  2. Part 48 Manufacturers and retailers excise taxes
  3. Subpart F Special Fuels

Nearby sections