Does your unit sell tangible personal property to external parties (including students, faculty, and staff)? If so, see below for some key points to keep in mind related to the sales tax reporting requirements:
- Taxable sales are typically sales of tangible personal property to an external party (including students, faculty, and staff).
- These types of sales are primarily recorded in self-supporting funds, but taxable sales also occur in other fund types as well.
- For example, taxable sales can also occur in gift funds when those sales relate to some sort of charitable fundraising activity.
- Fundraising revenue recorded in a gift fund from the sale of tangible personal property (whether the items were purchased for resale or received via donation) are subject to sales tax. A common example would be a unit who is selling t-shirts to help raise additional funds for scholarships.
- However, fundraising revenue recorded in a gift fund from the sale of tangible personal property (whether the items were purchased for resale or received via donation) at a live, silent, or online auction are typically exempt from sales tax. Thus, there is no need to collect and report sales tax in those scenarios.
Contact
For further details, contact the applicable subject matter experts listed in the Who to Ask list by searching on “Sales Tax”.
