United States Government
Sales by and sales directly to the United States Government, or any agency or instrumentality thereof, are not subject to sales or use tax. In order for the sale to be exempt, the government, agency or instrumentality involved must make the purchase of the item, obtain title to the item before or at the time it is delivered and pay directly to the vendor the purchase price of such item or use a United States Government credit card to pay the vendor the purchase price of such item.
United States Government Agencies and Instrumentalities
United States Government agencies and instrumentalities include the Departments of Defense, Army, Navy, Air Force, United States hospitals, American Red Cross, Federal Reserve Banks, federal land banks, federal housing projects, federal housing authorities, United States Postal Service, and any other department of the Federal Government whose activities are directly under federal control and whose purchases are paid for from the federal treasury.
Technical Publications for Federal Agencies and Instrumentalities
Refer to the Sales and Use Tax Bulletin for Government - Federal
See Final Agency Decision for General Dynamics Armament and Technical Products, Inc. regarding when title is transfered to the US Government pursuant to the terms of contracts containing federal acquisition regulations.