Comptroller's Office
 Policies and Procedures Manual

Effective: 01/01/2000
Revised: 06/01/2013 

CMP 108: Sales Tax


Purpose

To define university sales transactions subject to Arizona sales tax


Sources

Arizona Administrative Rules and Regulations, R15-5-101 to R15-5-2237
Arizona Department of Revenue
University policy

Background

The university has one Arizona sales tax license covering all taxable sales. Sales tax payments to the Department of Revenue are compiled by the Comptroller's Office. Departments desiring to sell goods or services should contact the Comptroller's Office to determine whether these sales are taxable and, if taxable, for the procedures to be followed.

Responsibility for making inquiries to the Comptroller's Office for sales tax determinations and collection of taxes rests with each university department. The Comptroller's Office’s responsibility is to facilitate the overall sales tax process and provide guidance to departments.


Policy

The university is subject to Arizona sales tax; however, this sales tax does not apply to interdepartmental transactions and sales that are casual or inconsequential at the university level. The sales areas subject to sales tax are listed in the table below.

State Sales Tax Categories Tax Rate
Tax Area Definition effective 6/1/10 effective 6/1/13
  1. Advertising
State of Arizona exempt as of December 31, 1985. City of Flagstaff rate is charged. 1.721% 1.721%
  1. Amusements
Admissions to movies, athletic events, concerts, plays, etc., are considered amusements other than for activities or projects of bona fide religious or educational institutions. Essentially, this provision exempts amusement sales for which NAU is the sponsor or promoter. 7.725% 6.725%
  1. Printing
Sales of printing applies to job printing, engraving, embossing, and copying. 7.725% 6.725%
  1. Retail
Retail sales include tangible personal property, except textbooks sold by the NAU Bookstore. 7.725% 6.725%
  1. Publishing
Publishing revenues include sales of newspapers, magazines, or other periodicals, including gross income from subscriptions. 7.725% 6.725%
  1. Rental of Personal Property
Includes rental or leasing of any tangible personal property. 7.725% 6.725%


Goods Purchased for Resale

Goods purchased for resale can be exempt from state sales at the time of purchase.

In order to take advantage of the state sales tax exemption at the time of purchase, departments must collect state sales tax at the time of the retail sale. Additionally, the department must remit the state sales tax collected at the time of the retail sale through the university-wide monthly tax return prepared by the Comptroller's Office.

 


For additional information on Sales Tax, refer to the Contracting and Purchasing Services Sales and Use Tax Web Page.


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