Board of Contract Appeals
                    General Services Administration
                         Washington, D.C. 20405
 
                           _________________
 
                             April 21, 1999
                           _________________
 
 
                            GSBCA 14884-RELO
 
 
                   In the Matter of LARRY CUNNINGHAM
 
 
        Larry Cunningham, Madison, AL,  Claimant.
 
        Lt.  Col. B. C. Dawson, Deputy Director, Finance Operations,
   Defense  Finance and Accounting Service, St. Louis, MO, appearing
   for Department of Defense.
 
   PARKER, Board Judge.
 
        When Larry Cunningham, a civilian employee of the Department
   of Defense  (DoD), was  transferred  from Germany  to Alabama  in
   November  1998, he  brought with him  a 1996  Volvo which  he had
   purchased while  overseas.  In  order to register the  vehicle in
   Alabama, Mr. Cunningham was required to pay state and local sales
   taxes totaling  $1113.  Alabama  charged the sales  taxes because
   the vehicle had never been registered in the United States and no
   sales tax had ever been paid.
 
        DoD denied Mr.  Cunningham s claim for reimbursement  of the
   sales taxes because  it determined that  the taxes were   imposed
   upon Mr. Cunningham . . . due  to his desire to own a  vehicle[,]
   not because of his permanent  change of station move.   DoD  also
   justified its  denial of the claim on  the basis that its payment
   of  $350 to  Mr.  Cunningham for  miscellaneous expenses   is the
   maximum  amount allowed for an employee without dependents.   Mr.
   Cunningham has asked that the Board review DoD s decision.
 
                               Discussion
 
        Reimbursement for  expenses incurred in connection  with the
   registration of  an automobile  is covered  by the  miscellaneous
   expense allowance:
 
        The purpose of MEA [miscellaneous expense allowance] is
        to    pay    various   costs    associated    with   an
        authorized/approved      .      .      .      residence
        relocation. . . . Examples   of    reimbursable   costs
        include (but aren t limited to) the costs of:
 
             . . .
 
             5.   Automobile registration, driver s license and
                  taxes imposed when  bringing automobiles into
                  some jurisdictions . . . .
 
   Joint Travel Regulations (JTR) C9000-5.
 
        Automobile sales taxes imposed as a condition of registering
   a  vehicle  brought  to  the  new duty  station  have  long  been
   considered to be reimbursable as miscellaneous expenses.  Dolores
   T. Hodges,  B-173365 (Sept. 3, 1971).   There is  no exception of
   which we are aware  for sales taxes imposed because a vehicle had
   never been registered  in the United States.  Given  that the JTR
   contemplates reimbursing employees for certain automobile-related
   expenses,  including taxes imposed when bringing an automobile to
   the new duty  station, we do not understand  DoD s statement that
   payment of the automobile sales taxes  was  due to his desire  to
   own a vehicle[,]  not because of his permanent  change of station
   move.   Clearly, the opposite is true:  Mr. Cunningham had to pay
   the taxes only because he was transferred to a jurisdiction which
   imposed them  as a condition  of registering his vehicle.   DoD s
   first reason for  declining to reimburse  Mr. Cunningham lacks  a
   reasonable basis.
 
        DoD  also denied Mr. Cunningham s claim for reimbursement of
   the taxes because it  paid him a miscellaneous expense  allowance
   of  $350, which  DoD  maintains  is the   maximum.    Again,  DoD
   misreads  the regulations.  For employees without dependents, the
   lesser of $350  or one week s basic compensation  is the minimum,
   not  the maximum reimbursement  for miscellaneous expenses.   JTR
   9004-A.1.   Where, as here,  an employee s claim is  supported by
   acceptable  evidence   of  payment,  the  agency   may  authorize
   reimbursement up to  an amount equal to one  week s basic salary,
   not to exceed the amount paid to a GS-13, step 10.  JTR 9004-B.
 
                                Decision
 
        DoD s decision  that Mr.  Cunningham may  not be  reimbursed
   under current regulations  was incorrect.   DoD is authorized  to
   reimburse  Mr. Cunningham  up to  an amount  equal to  one week s
   basic salary, not to exceed the amount paid to a GS-13,  step 10.
   DoD is  ordered to  reconsider  its decision  in accordance  with
   applicable  regulations  and  the  guidance  contained   in  this
   opinion.
 
 
 
                                      __________________________
                                      ROBERT W. PARKER
                                      Board Judge