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Procedure BF-AS-PR2 Assessment, Collection, and Depositing Sales Tax

 

Dates Effective From: Pending
Responsible Officer: Officer
Sponsoring Department: Accounting Services
Errors or changes to: Office of Legal Affairs policysite@uta.edu

Contents


  1. Objective
  2. Scope
  3. Procedures
  4. Definitions
  5. Relevant Federal and State Statutes
  6. Relevant UT System and UTA Policies, Procedures, and Forms
  7. Appendices
  8. Contact Information
  1. Objective

    -

  2. Scope

    -

  3. Procedures

    1. Texas Limited Sales, Excise and Use Tax
      1. The Texas Limited Sales, Excise and Use Tax Act imposes a tax on the sale, lease or rental of tangible personal (touchable, moveable) property and on certain specified services. The state sales tax rate is 6.25%. Arlington local taxes of 1.75% combine with this for a total sales tax rate of 8.0%. In general, the Texas sales tax is imposed on the "sales price" (amount for which the item is sold including labor, materials, overhead, transportation) of each "sale" of a "taxable item" in Texas. The tax is not imposed when an exemption from the tax applies, meaning the purchaser would present UTA with a properly completed Texas Sales and Use Tax Exemption Certification (Form 2-5).
      2. When sales tax is collected, it is deposited to the same cost center as the revenue generated from the sale. General ledger account 20218 must be used for the sales tax portion of the deposit. The sales tax remittance to the State of Texas is processed by Accounting Services.
      3. If you have questions regarding the assessment and collection of sales tax, please call Accounting Services at 817-272-1541.
  4. Definitions

     

    N/A

  5. Relevant Federal and State Statutes

     

    Texas Limited Sales, Excise and Use Tax Act

  6. Relevant UT System and UTA Policies, Procedures, and Forms

     

    Texas Sales and Use Tax Exemption Certification (Form 2-5)

  7. Appendices

     

    N/A

  8. Contact Information

     

    Office of Accounting Services: 817-272-2194 or acctserv@uta.edu