1500.1 - General
Generally speaking, the University is exempt from having to pay sales tax on direct purchases of goods and services within the state of Kansas. However, this exemption is limited to goods and services used in activities provided or sponsored by the University. The University is required to collect sales tax on goods and services it sells to others, unless the purchaser provides a sales tax exemption certificate to the University.
The Finance Office has obtained sales tax exemptions for purchases made in several states, and is in the process of applying for exemptions in other states. As of April 26, 2006, the University has been granted sales tax exemptions in Colorado, Idaho, Illinois and Indiana. Contact the Director of Finance for details on what must be furnished to vendors in those states for the University to take advantage of the exemptions.Sales tax topics are addressed in more detail in two guides published by the Finance Office. See Other Guidance below.
1500.2 - Purchases by the University
As noted above, direct purchases by the University are usually exempt from sales tax. It is important to note that in order to qualify as a "direct sale" under Kansas law, an invoice must be made out to Washburn University, and the invoice must be paid with University funds. This means whenever a University employee makes a purchase with personal funds and is later reimbursed by the University, the employee must pay sales tax on the purchase, even if the purchase would have been exempt if paid with a University check or University credit card.
1500.3 - Sales by the University
All sales by the University must charge sales tax unless the purchaser is exempt, the item purchased is exempt, or the item will be used in an exempt manner. Whenever a purchaser claims a sales tax exemption, the University must obtain a copy of the applicable sales tax exemption certificate from the purchaser. If the purchaser cannot or will not provide a certificate, the University must collect sales tax on the sale. The sales tax rate is dependent on where the purchaser takes possession of the goods or receives the services, as different jurisdictions have different sales tax rates. Sales to purchasers outside of Kansas are not currently subject to sales tax. Contact the Finance Office if there are questions about the applicable rate.
When one University department makes a sale to another, sales tax is not to be collected. In this situation, the University is both the purchaser and the seller, and our sales tax exemption as a purchaser applies to the transaction.
1500.4 - Student and Other Organizations
The vast majority of student and other organizations on campus are considered to be affiliated with, but not a part of, the University. Under Kansas sales tax law, such organizations may not use the University's sales tax exemption for items it purchases. Depending on the purpose of the organization, it may qualify for a sales tax exemption in its own right, but it must apply for the exemption as a separate entity from the University.
1500.5 - Other Guidance
The guides listed below are intended to assist Washburn University department heads, and other faculty and staff, in understanding how Kansas sales tax applies to various aspects of departmental operations, both academic and administrative. Although every effort has been made to identify and address the most common issues, situations not addressed in the Guide may arise. In such cases, the department head should contact the Director of Finance for guidance.
- Sales Tax Guide for Departments (May 2006) - Microsoft Word document
- Sales Tax Guide for Organizations (under development)
General sales tax guidance is provided by the Kansas Department of Revenue (KDOR) in Publication KS-1510, Sales Tax and Compensating Use Tax, and Publication KS-1560, Tax Guide for Schools and Educational Institutions.
The WUTH is presented here in HTML format. Click on the links in the link box on the right to go to a specific section of the handbook. A printable version of the handbook in PDF format will be forthcoming in the future. Significant portions of the WUTH are adapted from The Texas A&M University System Tax Manual, the nonresident alien tax websites of Towson University, Cornell University, and The University of Missouri, and information provided by Arctic International LLC.