Changed Rule will Reduce Utah State Sales Tax Payments

Rule R3-010A: Expenditure and Reimbursement Requirements has changed to reduce Utah Sales Tax payments made by the University.

Beginning February 1, 2015, Accounts Payable will treat reimbursement requests, which include Utah Sales Tax, in the following ways:

If Utah Sales Tax was paid as part of a recruitment or entertainment business meal for 10 individuals or less, the amount of tax paid will be considered an allowable expense and will be reimbursed to the requestor.

NOTE: PCards are considered the preferred method of payment for recruitment and entertainment business meals for 10 individuals or less.

If Utah Sales Tax was paid as part of a business-related purchase (supplies or equipment, for example) the amount of tax paid will be considered unallowable and will not be reimbursed.

Exceptions: Academic Deans or equivalent positions in non-academic areas have the authority to approve an exception to pay Utah Sales Tax in extraordinary circumstances.

December 8, 2014:

Academic Deans or Directors in non-academic areas may approve, as required by Policy 3-031; (Recruitment and Entertainment Expenses), use of PCards for business meals on an individual cardholder basis.

New PCard applications will display a yes/no option for the business meal allowance as well as a signature line for Dean/Director approval.

Existing Cardholders that want to use their PCard for payment of business meals AND HAVE NOT FILED THE BUSINESS MEAL EXEMPTION FORM IN THE PAST, must send a memo (signed by Dean/Director) to Jane Scott in Purchasing to authorize the PCard for business meal use.

Monday, January 5, 2015:

Accounts Payable will reach out to departments that have paid Sales Tax to notify them of upcoming changes.

Monday, February 2, 2015:

Accounts Payable will reduce reimbursements by the amount of unauthorized Utah Sales Tax without notification to the requestor.

Sales Tax Reduction is part of our overall P2P Initiative to improve efficiencies and procurement savings across the University.