Tax

Responsible Officer: Vice President for Business Affairs and Controller

Sponsoring Department: Procurement Services

Revision Date: 05 June 2009

Errors or changes to: netsolutions@uta.edu

Procedure Objective

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

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.

Scope

All employees involved in making purchases for UT Arlington departments.

Website Address for This Procedure

http://www.uta.edu/policy/procedure/4-16

Related Statutes, Policies, Requirements or Standards

UT System Administration Policies and Standards Other Policies and Standards
UTS159, Purchasing

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

(Resource not found) (HOP ADM 5-2400)

Texas Tax Code Section 151.309(4) Governmental Entities

UT Arlington "Travel Guide"

Miscellaneous Travel Fees/Expenses Does Not Apply to State Accounts (Procedure 2-92)

Transportation Does Not Apply to State Accounts (Procedure 2-89)

Contacts

If you have any questions about UT Arlington Procedure 4-16, Taxes Applicable to Purchases, contact the following departments:

Subject Office Name Telephone Number Email/URL
All topics in Procedure Procurement Services (817) 272-2194 procurement_help@uta.edu
Website access Net Solutions (817) 272-0222 netsolutions@uta.edu
http://www.uta.edu/netsolutions

Definitions

N/A

Responsibilities

Employee
  • Purchases gasoline with personal funds while on travel status
  • Provides vendor with Texas Sales and Use Tax Exemption Certification if needed
The University
  • Pays or reimburses taxes for motor fuel, restaurant dining, and catering

Procedures

Section I. 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 2-5) 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.
Section II. Federal Excise Tax

The University is exempt from paying federal excise tax.

Section III. Sales Tax on Rental Cars

Sales tax on rent cars rented in Texas and in other states is reimbursable.

Section IV. 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.

  3. For travel-related tax and reimbursement information see the Travel Guide.

Forms and Tools/Online Processes

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