A. General. The University of Idaho is exempt from paying Idaho sales tax in the normal course of its business. However, under Idaho State Code, IPAPA 35.02.22, 16, (e), there are situations whereby state sales tax is required to be collected. Specifically, the code requires:

Sales by the state, its departments or institutions, counties, cities, school districts or any political subdivision are subject to sales tax, which is collected by the political sub-division.

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.

A-2. Admission Charges. Including fees for using golf courses and swimming pools, athletic events, concerts, theater productions, and/or admission to museums.

A-3. Use of Facilities for Recreation. Include receipts from the rental of parks, buildings, or gymnasiums.

A-4. Rental of University Property. Includes lodging and general room rentals, equipment and facilities.

A-5. 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. [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.]

B. Procedures. As taxable events occur, both revenues and sales tax should be collected. Sales tax is currently 6% of the purchase price. Departments can add 6% to their purchase price, or they can calculate a purchase price that includes sales tax. Examples include: (1) Item A is priced $5.00. Departments should collect $5.00 plus $.30 sales tax, for a total of $5.30. (2) Item B is priced at $4.72. Departments should collect $4.72 plus $.28 sales tax for a total of $5.00. [ed. 10-07]

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.