SECTION: FISCAL INDEX: B-14

SUBJECT: SALES/USE TAXES, ETC.

POLICY

The University is not exempt from the collection and remission of sales taxes. All applicable state sales tax will be collected and submitted to the state for department sales to students or the general public.  Refer to Accounting Policy Statement APS008:  Deposit of Sales Taxes and Hotel Occupancy Taxes Collected by State Agencies at the following web site for more information:  http://www.window.state.tx.us/fm/pubs/aps/04-05/aps008.html.

PROCEDURE

The Finance Department will calculate the sales tax from the amount collected from a department activity that should have included a sales tax, but did not. The amount of this tax is shown in a separate cost center in the Balance Sheet.  Finance personnel will conclude that all transactions are subject to sales tax unless departments advise otherwise.  For example, department staff should mark on the receipt that the item(s) is tax exempt.

Sales tax will not be assessed on items or services purchased by tax exempt organizations.

Guidance on whether or not an item is subject to sales tax may be found at the following web sites:

    http://www.window.state.tx.us/taxinfo/taxpubs/taxpubs.html#sales    

    http://www.window.state.tx.us/taxinfo/sales/

Approved by: 


 Signature obtained             10/05/05  
Tim Hudson, Ph.D.             Date 
President

Next review date: October 2007
Origination: Finance Department