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Procedure BF-PGS-PR4 Tax

 

Dates Effective From: April 20, 2016
Responsible Officer: Chief Financial Officer and Vice President
Sponsoring Department: Procurement 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


    This procedure provides guidelines for the payment of, or exemption from, taxes applied to UT Arlington purchases.

  2. Scope


    All employees involved in making purchases for UT Arlington departments.

  3. Procedures

    1. Rationale

      Employees who make purchases for UT must be aware of which taxes must be paid, which taxes the University does not pay, and the forms that are to be provided to vendors to process tax exemptions.
    2. Responsibilities
      1. Employee
        1. Purchases gasoline with personal funds while on travel status
        2. Provides vendor with Texas Sales and Use Tax Exemption Certification if needed
      2. The University
        1. Pays or reimburses taxes for motor fuel, restaurant dining, and catering
    3. Procedures
      1. State and City Sales Tax
        1. The University is exempt from paying state and city sales tax under Texas Tax Code, Section 151.309(4).
          1. The Texas Sales and Use Tax Exemption Certification (Form BF-PGS-F3) is to be presented to vendors as needed.
          2. Texas state sales tax will not be reimbursed.
        2. The State of Texas is not exempt from the Texas motor fuel tax; therefore, the University will approve payment of taxes for motor fuel. State employees on travel status are required to use personal funds for the purchase of gasoline.
      2. Federal Excise Tax

        The University is exempt from paying federal excise tax.
      3. Sales Tax on Rental Cars

        Sales tax on rent cars rented in Texas and in other states is reimbursable.
      4. Tax on Food and Lodging
        1. Taxes applied to dining in a restaurant and for catering (pick-up and delivery) will be approved for payment.
        2. Texas state lodging tax will not be reimbursed but other hotel taxes such as city, county local or out of state taxes are reimbursable.
  4. Definitions

     

    N/A

  5. Relevant Federal and State Statutes


    Texas Tax Code Section 151.309(4) Governmental Entities

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


    UTS 159 Purchasing

    Board of Regents' Rules and Regulations, Rule 20901, Procurement of Certain Goods and Services

    Transportation Options in Travel Status (Procedure BF-T-PR5)

    Texas Sales and Use Tax Exemption Certification (Form BF-PGS-F3)

  7. Appendices


    Texas Comptroller's Search Website for Tax Exempt Organizations

  8. Contact Information


    Procurement Services
    Phone: 817-272-2194 or Email: procurement@uta.edu