These entities have been issued sales tax exempt certificates by the various taxing agencies. These exemptions apply to the entity buying the goods, not the entity selling the goods. Departments are responsible for collecting the appropriate sales tax on sales made to other than tax-exempt individuals and entities. Current rates are available through the fiscal affairs office. Departments are responsible for obtaining a sales tax exempt certificate from those entities entitled to sales tax exemption.
Departments collecting sales tax are responsible for depositing the money with other sales deposits.
For departments engaging in sales on a regular basis, make the deposit to the corresponding department sales tax liability object code. Otherwise, deposit sales tax with the proceeds from the sales and note on the deposit form the amount of tax collected. Fiscal affairs office will prepare and submit monthly sales tax returns to the various taxing agencies. They will reconcile between the actual sales taxes collected and deposited and those calculated based on sales revenues. Differences will be investigated and if necessary, sales tax imputed on sales where taxes were not properly collected.