20.11 - Idaho Sales Tax Collection

January 13, 2011

A. General. The University of Idaho is exempt from paying Idaho sales tax in the normal course of its business. However, the University's sales tax exemption does not apply to UI employees, students and most student organizations.  Under Idaho Administrative Code, IDAPA 35.01.02, "Idaho Sales and Use Tax Administrative Rules," the University is required to collect Idaho sales tax on taxable sales. [rev. 1-11]  

It is also the responsibility of each department to maintain complete documentation to support all receipts that are reported as tax exempt.  Examples of supporting documentation include seller invoices showing out-of-state shipping address, vendor purchase orders indicating tax exemption status, or a properly completed form ST-101 or ST-104G. [add. 1-11]

Examples of the types of taxable sales most commonly made by the University are as follows:

A-1. Sales of Tangible Personal Property. Including (but not limited to): Books, maps, office supplies, computers, unclaimed property, food, concessions, chemicals, equipment rentals, trees and plants, clothing, publications, pamphlets, surplus property, and photocopies. [rev. 1-11]

A-2. Course Lab Fees.  Course lab fees charged to students in addition to regular registration may be taxable.  If the lab fees paid provide books, lab manuals, photocopies, consumable materials or supplies to students for personal or classroom use, then the lab fee is taxable.  If the lab fee covers maintenance costs of the lab only, then the fee is not taxable.  However, if the lab fee is a mixture of both, the portion that is consumable items to the student must have the dollar value calculated and that amount will be taxed.  If this cannot be determined, then the entire lab fee must be considered taxable. [add. 1-11]

A-3. Admission Charges. Including fees for using golf courses and swimming pools, athletic events, concerts, theater productions, and entertainment events. [ren. & ed. 1-11]

A-4. Use of Facilities for Recreation. Include receipts from the rental of parks, buildings, or gymnasiums.  [ren. 1-11]

A-5. Rental of University Property. Includes lodging and general room rentals, equipment and facilities. However, rental of University facilities to taxable entities for events to which admission is charged is exempt as the sales tax is collected on the price of admission to the event. [ren. & rev. 1-11]

A-6. Exceptions to Collection of State Sales Tax. As a general rule, sales to and purchases made by other University departments, Idaho state agencies or the federal government are not taxable. Proper documentation should be acquired from these agencies and maintained on file within the selling department.  [Note: Sales made to any other outside agency or private individual are considered taxable, and each department should collect the appropriate sales and use taxes.]  [ren. & rev. 1-11]

B. Procedures. When a taxable sale occurs, sales tax must be collected at the point of sale. Sales tax is currently 6% of the purchase price. Units can add 6% to their purchase price, or they can calculate a purchase price that includes sales tax.  [ed. 10-07, ed. 1-11]

Example:  Selling price is $15.00; current tax rate is 6%. [add. 1-11]

Ex. 1: Sales price excludes sales tax. Ex. 2: Sales price includes sales tax.
$15.00 × 0.06 = $  0.90 $15.00 ÷ 1.06 = $14.15
$15.00 + $0.90 = $15.90 $15.00 - $14.15 = $  0.85
Price of item sold = $15.00 Price of item sold = $14.15
Sales tax = $  0.90 Sales tax = $  0.85
Total sale = $15.90 Total sale = $15.00

B-1. Reporting Sales Tax. Departments will fill out a Cash Transmittal Form [see 20.06 for detailed instructions on how to report both revenues and taxes]. Revenues will be reported with a revenue account code ending with a "T" (R-----T), and sales tax will be credited to the fund of the organization receiving the revenue and general ledger account 0670. [ed. 1-11]

C. Information. Cash Transmittal/General Receipt form is available from Student Accounts. Call the cashiers at (208) 885-2137, 2138, or 2139 to order forms. For questions regarding whether a sale is considered taxable or for information on acceptable tax exemption documentation, contact General Accounting at General Accounting email. [ed. 7-10, rev. 1-11]