Should a hotel or restaurant charge sales tax for meals and lodging expenses incurred by federal government employees who are traveling on business?
If a federal employee is traveling on government business and payment for meals and lodging is made directly by the federal government pursuant to a purchase order (by direct billing to the government or use of a government credit card), no tax will apply. However, if the federal employee pays for meals and lodging with personal funds no exemption is available even if the employee will be reimbursed by the government. No exemption for meals and lodging is available to state or local government employees.
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