Effective immediately, units that sell tangible personal property delivered to customers in Arkansas and New Mexico must charge and collect vendor’s sales/use/gross receipts tax.
What is tangible personal property?
Examples of tangible personal property include books, printers, laptops, cosmetics, logo merchandise, jewelry, and clothing.
Step 1: Charge and Collect Sales/Use/Gross Receipts Tax
The general sales/use tax rates for Arkansas can be found on the Arkansas Department of Finance and Administration website.
The gross receipts tax rates for New Mexico can be found on the New Mexico Taxation and Revenue website.
NOTE: A complete listing of states for which sales/use/gross receipts tax must be collected can be found in the table under “Sales to Clients in Other States” in Sec 18.6, Sales and Use Tax.
Step 2: Record and Report Sales/Use/Gross Receipts Tax
- All monies collected from sales/use/gross receipts tax on tangible personal property delivered to customers in Arkansas and New Mexico must be correctly recorded and reported to University Accounting and Financial Reporting (UAFR) to assist with preparing and filing tax returns and paying any taxes due to these two states.
- For taxable sales associated with a self-supporting or service plan fund, record the sales revenue and the tax collected to the appropriate account code in the applicable fund of the selling unit.
- For taxable sales taking place within a gift fund (such as the sale of donated or purchased tangible personal property sold as part of a fundraiser), complete the applicable University of Illinois Foundation (UIF) Gift Transmittal Form and enter the exact amount of calculated sales tax in the “Comments” field of the form.
- Monthly, submit a report of sales and tax collected, by state and/or district, to UAFR using the University of Illinois Sales Tax Reporting Form. The report must be submitted no later than the tenth of the month following the date of sale. UAFR will prepare and file the necessary tax returns, pay any tax due, and move the tax liability from the unit’s fund to the custodial fund from which the tax was paid.
NOTE: This recording and reporting process should be followed for all states for which sales/use taxes are collected.
See “Collect and Report Sales and Use Tax” in Section 22, Self-Supporting/Revenue Generating Activities for additional information.
Contact
If you have questions, contact:
- Treasury Operations, Tax Compliance and Analysis at 217-244-8359 or
- UAFR at 217-333-4568
