La Joya ISD Internal Audit Sales Tax Reporting

1. La Joya ISD Internal Audit Sales Tax Reporting Rene Flores – Internal Auditor Elias Garcia – Assistant Internal Auditor Gracie Muniz – Secretary March 22, 2013

2. Sales tax on taxable transactions must be collected, reported and remitted each month (including summer months and months with zero taxable sales) to the Internal Audit Department using the Sales Tax Summary Report • The Internal Audit Department will compile and forward the information to the Accounting Department • The sales tax collected will be forwarded to the State Comptroller’s Office Sales Tax Reporting

3. Two one-day tax-free sales per calendar year • Campus-wide Fundraisers • Clubs: bona-fide chapters • Recognized by school • Elected officers • Hold meetings • Conducts business Tax-free sales

4. One way to qualify as a one-day tax-free sale would be to deliver the sellable items on a single day • Pre-paid orders and/or collections could be taken over an extended period before delivery • EXAMPLE: YEARBOOK SALES Qualifying for tax-free day

5. Acting as an agent or sales representative • Candy sales • Candles • Book-fairs Non-qualifying fundraisers

6. Food and beverage sales are exempt from collecting sales tax • Concession stand sales are also exempt Food and Beverage Sales

7. Sales tax must be collected when selling materials printed with the school logo (Unless sold during one-day tax-free sales) • T-shirts with school name or logos • Other school items (pencils, etc.) • EXAMPLE: SCHOOL STORE ITEMS Printed Materials

8. Sales tax must be collected when selling uniforms to students (Unless sold during one-day tax-free sales) • EXAMPLE: DRILL TEAM UNIFORMS • EXAMPLE: CHEERLEADING UNIFORMS (GLOVES, SHOES, ETC.) Uniforms

9. Filed monthly • Step 1: Determine if a sale is completed • A “sale” is the transfer of title or possession of tangible items • When campuses purchase inventory/merchandise for re-sale, they are considered the reseller • Step 2: Determine if a sale is taxable Sales Tax Reports

10. Added to selling price: • If the selling price is $1.00, the school would collect $1.09 for each item sold. (roundedat 8.25% tax rate) • Included in selling price: • If the total sales include tax, you must back out the amount of the sales tax. • Divide the total revenue collected by 1.0825. EXAMPLE: $100.00 revenue collected divided by 1.0825 = $92.38 (rounded). $92.38 is the amount that is reported as taxable sales. (at 8.25% tax rate) Calculating Sales Tax

11. Sales Tax Report • Completed by Club or Group Sponsor • Enter club/organization and reporting month • Enter total sales • Enter non-taxable • Enter one-day tax-free sales • Form will calculate: • Net taxable sales • Total taxes Sales Tax Forms

12. Sales Tax Summary • Completed by Bookkeeper • Enter Club or Group List • Enter total sales • Enter non-taxable • Enter one-day tax-free sales • Form will calculate: • Net taxable sales • Total taxes Sales Tax Forms

13. After a check is completed to pay the sales tax collected: • Enter the check on the CAF system • Each club/organization that submitted sales tax will have their portion deducted on the check screen for the corresponding month Entering Sales Tax

14. Examples

15. Contact us: Tel: 956-323-2645 956-323-2647 Rene Flores: r.flores11@lajoyaisd.net Elias Garcia: e.garcia13@lajoyaisd.net Gracie Muniz: g.muniz2@lajoyaisd.net Questions ?