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FSS/PPS 03.23 - Texas Sales and Use Taxes - Collection, Reporting, and Remittance

Texas Sales and Use Taxes - Collection, Reporting, and Remittance

FSS/PPS No. 03.23 (03.09.03)
Issue No. 1
Effective Date: 5/01/2014
Next Review Date: 5/01/2018 (E4Y)
Sr. Reviewer: Director, Payroll and Tax Compliance

  1. PURPOSE

    1. To establish responsibility and policy regarding the charging and collection of state sales tax on all taxable goods and services unless a Sales Tax Exemption or Resale Certificate is presented. The university is then responsible to wire all collected sales tax funds and submission of a monthly sales tax report to the State of Texas Comptroller’s Office.

    2. To ensure that policy conforms to State Law.

  2. POLICY STATEMENTS

    1. It is the policy of the university to comply with the state of Texas Sales and Use Tax regulations by collecting, accounting for, reporting and remitting sales tax in a timely manner. Departments engaged in the sale of taxable goods and services must collect and deposit the sales tax, and the university must forward a monthly report to the State of Texas Comptroller’s Office.

    2. The purpose of this policy is to protect the university from penalties for failure to timely file complete and accurate tax returns.

  3. DEFINITIONS

    1. Seller – Every retailer on campus or any other person or organization on campus who sells, leases or rents taxable items or services. Examples of sellers on campus are the University Bookstore and PAWS market in the LBJ Student Center, the Student Recreation Center, the Outdoor Recreation Center, the Golf Course Pro Shop, and the Texas State Athletics website and concessions.

    2. Taxable vs. non-taxable goods or service – State and local Sales and Use Tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services, as defined by Texas Tax Code and Texas Administrative Code, which are linked on the State Comptroller’s website. Services related to the University’s core educational mission, such as agreements pertaining to teaching services, internships or research are not generally subject to sales tax.

      Tax Code Sec. 151

      Texas Administrative Code, Title 34, Chapter I (3(O))

      Texas Comptroller’s website

    3. Sales Tax Exemption – A seller may accept a valid Texas Sales and Use Tax Exemption Certificate that exempts the buyer from sales and use tax on goods or services.

  4. PROCEDURES

    1. Any department engaged in the sale of taxable goods and services must collect and deposit the sales tax no later than the close of business the next working day after receiving funds. The department must follow the university’s cash handling procedures, which are outlined in UPPS 03.01.05, University Income Recognition and Associated Cash-Handling Procedures.

    2. Collected taxes will be deposited in, accounted for and remitted from the sales tax liability account 201300.

    3. All sales tax remittances to the tax authorities will be coordinated through the university’s Student Business Services Office.

    4. Any questions about whether the sale of a particular good or service is subject to sales tax in Texas or another jurisdiction should be directed to the Payroll and Tax Compliance Office for resolution before the sale takes place.

  5. REVIEWERS OF THIS PPS

    1. Reviewers of this PPS include the following:

      Position Date
      Director, Payroll and Tax Compliance May 1 E4Y
  6. CERTIFICATION STATEMENT

    This PPS has been approved by the following individuals in their official capacities and represents Texas State Finance and Support Services policy and procedure from the date of this document until superseded.

    Director of Payroll and Tax Compliance; senior reviewer of this PPS

    Associate Vice President for Financial Services

    Vice President for Finance and Support Services