Understanding the Cards

GSA sent a letter to the states requesting tax exemption for purchases made using the GSA SmartPay 2 charge cards. To understand how taxes should be treated, you need to determine what type of account was involved in the transaction and how the particular state treats those accounts.

There are three account types within GSA SmartPay Program:

1. Centrally Billed Accounts (CBA): CBAs are card accounts where payment is made directly to the bank by the Government.
2. Individually Billed Accounts (IBA): IBAs are card accounts where payment is made directly to the bank by the individual.
3. Integrated Accounts: Integrated accounts are CBAs.

Fleet Cards and Integrated Cards:

Purchase and Integrated Cards:

Travel and Integrated Cards:

Some states also provide tax exemption on individually billed travel accounts.

To determine whether the travel or integrated card is a CBA or an IBA, refer to the 6th digit of the account number on the card. Here is a table that can help:

After identifying the type of account, read the applicable state response letter to determine how that state will treat the card for tax purposes.  The state response letters also identify any tax exemption certification that may be required.