7.5.16 Sales and Use Tax

7.5.16

Sales and Use Tax

Last Update Approved: November 6, 2013

Edited/Revised: July 8, 2015

Revised Effective: August 7, 2015

 

Policy

Middle Georgia State University, as a unit of the State of Georgia, is exempt from payment of Georgia Sales and Use Tax and Federal Excise taxes when using public funds.

Guidelines

State sales tax does not apply to sales to the United States of America, the State of Georgia, or any county or municipality of said State, provided purchases are pursuant to official procurement to be purchased with public funds.

The tax applies when such sales are made without the required purchase order or are not paid from public funds.

Request for Exemption Certificate

Any Department/Unit official receiving a request for an Exemption Certificate for taxes should forward the request to the Procurement Office. The ePro Requisition to which the certificate pertains should be identified. EXCEPTION: Resale exemption certificates for merchandise purchased for resale by the Campus Stores may be executed by the Campus Stores Manager.

Other State Sales Taxes

Generally, the University is not liable to pay State sales taxes of other states if the transaction is consummated in Georgia. However, the University is liable to pay taxes of other states if title passes in that state.

Taxes on Petty Cash Purchases

Sales tax charged on petty cash purchases can be paid by the purchaser and reimbursement of the sales tax will be made to the petty cash account by the University. The individual purchasing an item with cash should attempt to avoid the taxes by informing the supplier that the items are for use by Middle Georgia State University, a Unit of the University System of Georgia. To avoid the tax, the individual should use a purchase order when practicable.

Taxes Chargeable to Agency Funds

Agency funds are not exempt from the payment of State and Federal taxes. This is a requirement of Executive Order 1959-18 issued March 23, 1959.

Collection of Sales Tax

Middle Georgia State University is not exempt from collecting sales tax. Sales tax should be collected for any sales, including ticket sales and concession sales. Question regarding sales tax collections should be directed to the Controller’s office.