Sales and Use Tax Exemptions
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The university, as a State of Texas agency, is exempt from paying sales and use tax in the state of Texas.  Guidelines to follow when making purchases on behalf of the university are as follows:

Employees should present a Texas Sales and Use Tax Exemption Certificate to Texas vendors.

Employees who present a Tax Exemption Certificate but are required to pay sales tax by the merchant, maybe reimbursed for the sales tax expense as follows:

• Sign the following or similar statement: "the vendor refused to honor the Texas Sales and Use Tax Exemption Certificate".
• Do not charge sales tax to a separate account number.  Use the same PeopleSoft account number charged for the primary expense.
• Do not charge sales tax to Fund 1, Fund 5, or ARP/ATP cost center accounts, even if reimbursable.
• Sales tax on business meals and rental cars may be reimbursed without explanation.  Property tax billed on leased equipment must be paid by the university.  Employees who do not present a Tax Exemption Certificate to a Texas vendor may not be reimbursed for any sales tax paid.

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