Sale to municipal government taxable?

March 1, 1999
Rose-Michele Nardi
Weiner, Brodsky, Sidman & Kider, P.C.
A city representative has approached us about purchasing certain new trucks from our truck dealership. The rep stated we should contact a local utility company for the exact specifications because the utility company has agreed to buy the trucks from the city 18 months after the city purchases them. Does the city’s agreement with the utility company affect our ability to sell the city the trucks on a tax-free basis?
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