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Update 020.md
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JennaySDavis committed Jul 18, 2024
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## Introduction

In accordance with established legal precedence, States do not have the authority to assess State sales tax to the Federal Government or instrumentalities of the Federal Government under the Supremacy Clause of the Constitution of the United States. However, there are instances where State sales tax can be assessed on Federal Government transactions based on the liability of payment. The Center for Charge Card Management maintains the GSA SmartTax educational campaign to provide information to customer and vendor communities about State sales tax exemption. For more information, please visit the SmartTax page on the [GSA SmartPay website](https://smartpay.gsa.gov/).
In accordance with established legal precedence, States do not have the authority to assess State sales tax to the Federal Government or instrumentalities of the Federal Government under the Supremacy Clause of the Constitution of the United States. However, there are instances where State sales tax can be assessed on Federal Government transactions based on the liability of payment. The Center for Charge Card Management maintains the GSA SmartTax educational campaign to provide information to customer and vendor communities about State sales tax exemption. For more information, please visit the SmartTax page on the [GSA SmartPay website](/).


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