Download Sales Tax Policy - MD Anderson Cancer Center

UTMDACC INSTITUTIONAL POLICY # ADM0144
SALES TAX POLICY
PURPOSE
The purpose of this policy is to ensure that Institutional and State Guidelines are followed when issuing
reimbursements or payments for Texas state sales and use tax.
POLICY STATEMENT
The University of Texas MD Anderson Cancer Center (MD Anderson) is part of The University of Texas
System and a state institution of higher education. All state institutions are exempt from payment of sales
tax to any vendor or individual for sale of goods or services, including reimbursements to employees.
SCOPE
This policy applies to all institutional funds, all employees to include faculty, and all requests for
reimbursement or payment of Texas state sales and use tax.
Compliance with this policy is the responsibility of all faculty, trainees/students, and other members of
MD Anderson’s workforce.
TARGET AUDIENCE
The target audience for this policy includes, but is not limited to, all faculty and other MD Anderson
employees.
DEFINITIONS
Authorized Agent: The employee or faculty member requesting tax exemption for a purchase, lease, or
rental.
State Sales and Use Tax: A tax imposed on any item sold, leased, or rented.
PROCEDURE
1.0
General Guidelines
1.1
The purchase, lease, or rental of a taxable item to a state agency is exempt from tax when the
organization or an authorized agent pays for the taxable item and provides the vendor an
exemption certificate in lieu of tax.
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UTMDACC INSTITUTIONAL POLICY # ADM0144
2.0
1.2
A state agency may not voluntarily pay a tax or fee if the agency is legally exempt from paying
it.
1.3
The Authorized Agent must present the completed Texas Sales and Use Tax Exemption
Certificate at the time of purchase. If the vendor does not accept the certificate, then payment
of the tax is allowable. If the Authorized Agent will be requesting reimbursement for this
expense, a notation should be made on the check request. Reimbursement will not be
provided if the Authorized Agent does not present the certificate to the vendor.
1.4
An employee of an exempt organization cannot claim an exemption from tax when purchasing
taxable items of a personal nature.
1.5
The Texas Sales and Use Tax Exemption Certificate is available on the Texas Comptroller
of Public Accounts site. The Tax Exemption Certificate is complete when the seller
information and “Description of items to be purchased” fields have been completed.
Sales Tax on Services
2.1
When there is a contract between the vendor and MD Anderson for services such as cellular
service, then the tax exemption certificate must be presented to the vendor at the time of
agreement.
2.2
Sales tax on services is a reimbursable expense only if a legitimate business purpose applies
for the purchase.
2.3
The sales tax amount reimbursable will be prorated if there is a legitimate business purpose
for service.
Note: Individuals receiving supplemental cell phone pay are not eligible for any additional
compensation for sales tax on cellular service. See the Cellular Phone Supplemental Pay
Policy (UTMDACC Institutional Policy # ADM0251).
3.0
4.0
Sales Tax on Business Entertainment
3.1
The reimbursement of sales tax on business entertainment expense is allowable.
3.2
When planning or organizing an event that involves catering, the tax exemption certificate
should be presented to the vendor before payment.
Sales Tax While Traveling
Specific guidelines govern the reimbursement of Sales Tax for individuals on approved institutional
travel. Please refer to the Travel Services site and Travel Management Policy (UTMDACC
Institutional Policy # ADM0145) for additional guidelines.
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UTMDACC INSTITUTIONAL POLICY # ADM0144
REFERENCES
The State of Texas Purchase Policies and Procedures Guide.
Texas Comptroller of Public Accounts site.
Texas Sales and Use Tax Exemption Certificate.
Travel Services site.
ATTACHMENTS / LINKS
None.
RELATED POLICIES
Cellular Phone Supplemental Pay Policy (UTMDACC Institutional Policy # ADM0251).
Travel Management Policy (UTMDACC Institutional Policy # ADM0145).
JOINT COMMISSION STANDARDS / NATIONAL PATIENT SAFETY GOALS
None.
OTHER RELATED ACCREDITATION / REGULATORY STANDARDS
None.
REFERENCES
None.
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UTMDACC INSTITUTIONAL POLICY # ADM0144
___________________________________________________________________________________
POLICY APPROVAL
Approved With Revisions Date: 04/17/2013
Approved Without Revisions Date:
Implementation Date: 04/17/2013
Version: 14.0
___________________________________________________________________________________
RESPONSIBLE DEPARTMENT(S)
Office of the CFO
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