E. I. du Pont de Nemours and Company contracted with the Atomic Energy Commission to construct and operate the Savannah River Project for development of the hydrogen bomb for a fee of one dollar. Under the contract du Pont was to purchase all materials and supplies with funds furnished by the United States, title to vest in the government immediately when it passed from the vendor. South Carolina attempted to apply its sales and use taxes to these purchases. In an action by the United States and du Pont before a statutory three-judge district court to enjoin collection of these taxes, held, injunction granted, one judge dissenting. The purchases by du Pont are exempt from state taxation because du Pont was acting as an agent of the federal government. United States v. Livingston, 179 F. Supp. 9 (E.D. S.C. 1959).
Robert M. Steed S.Ed.,
Constitutional Law - Governmental Immunity - Immunity of Agent of Federal Government to State Taxation,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol59/iss1/23