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Nov. 5, 2009: Repeal of 3 Percent Withholding Tax on Public Contracts Is Gaining Support

November 5, 2009
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ROCKVILLE, Md. - The Mechanical Contractors Association of America (MCAA) reports that the National Institute for Governmental Procurement, an umbrella group of public procurement officials from across the country, has weighed in with a resolution against the 3 percent withholding requirement on public contracts as an inequitable unfunded mandate and also with a letter to the Office of Management and Budget seeking administration support for repeal. In addition, the Government Withholding Relief Coalition has weighed in with the House Armed Services Committee asking for a review of the effect of the tax on defense procurement programs.

In June, MCAA and the Campaign for Quality Construction (CQC) alliance raised a similar cross-jurisdictional review with the House Oversight and Government Reform Committee. MCAA said the association and local affiliates also planned political activities in lawmakers’ home districts in the general election season to raise awareness of the costs the tax will impose on state and local government agencies in order to help collect federal taxes.

Publication date: 11/02/2009

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