Admits Selling Untaxed Fuel To The Internet Giant

NASA has admitted that it sold fuel to Google executives at a reduced price, according to a letter to U.S. Senator Chuck Grassley (R-ID).

In the letter from NASA Associate Administrator for Legislative and Intergovernmental Affairs Seth Statler, the agency says it has "carefully reviewed and considered the Inspector General's opinion on the sale of fuel to H211," Google's aircraft management company. "That sale of fuel was priced on a 'full cost' basis consistent with NASA's Agency-wide pricing policies on reimbursable activities with commercial partners."

The letter goes on to say that "in accordance with Federal law, NASA dos not collect state and local fuel taxes as such taxes are not payable for fuel sold at civil airports owned by the United States.

NASA does not have an avenue to pursue payments in excess of its full cost to provide the fuel under the earlier agreements with H211 as suggested by the Inspector General. However, in light of the concerns expressed with those agreements, NASA has reviewed its pricing approach and, consistent with established exceptions in NASA's policy, is now charging a 'market rate' for aviation fuel at Ames Research Center."

The letter says that the difference between the "market rate" and its full cost of providing fuel is being deposited with the U.S. Treasury "as miscellaneous receipts."

KNTV Television in San Francisco reports that Grassley still wants NASA to find a way to collect the taxes from Google that he says "taxpayers subsidized" for the Internet company, but in the letter, NASA says that is not possible. The Inspector General estimated the sales cost the Federal Government between $3.3 and $5.3 million in lost revenue.

(Image from NASA IG Report)

FMI: www.nasa.gov