Eastern Connecticut State University Knowledgebase

Sales Tax Exemption

Article ID: 440
Last updated: 27 Jun, 2018

As an agency of the State of Connecticut, Eastern is exempt from Sales and Use Tax. Student activity funds which are administered under the same rules are included in that exemption. Therefore, all services, supplies, and equipment used in the club's regular operations are not taxable. Vendors questioning this should be referred to SABO. A copy of Eastern's Tax Exemption Certificate may be sent to the vendor upon request.

Items on which clubs are required to pay sales tax are food, beverages, and meals. Receptions and banquets held at outside venues require a separate certification to obtain tax exemption.

When planning your purchases for events or fundraisers, please keep in mind:
     � Order your supplies, equipment, etc through the University Purchasing department.
     � Use the Departmental P-Card
     � Pay the vendor direct with a University check for the exact amount.
 
The rule of thumb is:
     � If a member pays out of pocket for the cost of items purchased, the 6.35% Sales tax will not be reimbursed.  Sales tax computed on a register receipt for the purchase of goods or services cannot be counted as part of an expense.
 
Example:  You receive a cash advance for $300.00.  You purchase items totaling $300.00-$283.02 including 16.98 in sales tax. You will be responsible for returning and depositing the sales tax amount of $16.98 in order to complete your cash advance reconciliation.

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Article ID: 440
Last updated: 27 Jun, 2018
Revision: 3
Views: 199