Procedures to Follow on University Sales to Outsiders
Sales Must Be Reported
All sales must be reported to Tax Services & Payroll Accounting by the 15th of the month following the sale month. Tax Services & Payroll Accounting consolidates University sales and reports and remits to the state.
Sales Tax Applies to all Sales of Tangible Personal Property
Utah imposes a sales tax to all retail sales of tangible personal property that are not specifically exempted. The tax is based on the amount paid for the articles. “Tangible personal property” is defined as all goods, wares, merchandise, produce, and commodities; all corporeal things and substances that are dealt in or capable of being possessed or exchanged; water in bottles, tanks, or other containers; and all other physically existing articles, including property severed from real estate. “Sale” means any transfer of title, exchange, or barter of tangible personal property or any other taxable item or service for consideration, within the state of Utah. (Utah Code Ann. Sections 59-12-103(1), 59-12-102.)
University Must Collect Sales Tax
The purchaser is liable for paying the sales tax, but vendors are responsible for collecting tax and remitting it to the state. The University is a vendor. (Utah Code Ann. 59-12-103, 59-12-107(1).)
Sales to Purchaser Exempt from Tax
If a sale is made to a purchaser who is exempt from tax, the purchaser must present a valid Utah State Exemption Certificate. (Utah Code Ann. 59-12-106(2).) Exempt sales are not exempt from being reported to the state so you must include exempt sales on the Financial Reporting & Accounting Monthly Sales Tax Report.
How does a religious or charitable institution get a Utah sales tax exemption number?
- Complete an Application for Sales Tax Exemption Number for Religious or Charitable Institutions, Form TC-160.
- Attach a copy of the determination letter from the IRS qualifying your organization as exempt from tax under Section 501(c)(3) of the Internal Revenue Code.
- Mail all information to:Utah State Tax CommissionReligious and Charitable Section210 North 1950 WestSalt Lake City, Utah 84134-3212
Last updated 9/29/03