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Sales Tax

Sales Tax. Brave new world. 3 things about sales tax (mostly). Compliance Environment is getting tougher Exemption Certificates – protect against private use Business Activities – plans to improve our understanding. Compliance Environment. Interested persons Governmental Audits

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Sales Tax

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  1. Sales Tax Brave new world

  2. 3 things about sales tax (mostly) • Compliance Environment is getting tougher • Exemption Certificates – protect against private use • Business Activities – plans to improve our understanding

  3. Compliance Environment • Interested persons • Governmental Audits • New / Aggressive sales tax laws, more expected • Going Forward, sales tax compliance: • CA & NY – strict compliance (tax by locality) • Processing options • Manual processing, • Via Campus Store, • Evaluate continuing operations, • Other Goals (in general, increased efficiency and effectiveness) • Exporting of Sales Tax data directly to “Tax” • Increased use of ListServ • Posting of questions to FAQ on Webpage • Questionnaires, surveys, interviews, etc.

  4. Exemption Certificates (NYS Requirements) • Business Expense • must be a legitimate Cornell University business expense • Valid Exemption Certificate • must be presented to the vendor • Paid by Cornell (Check, P-Card, or Corp Card*) • subject to policy limitations and prohibitions • corporate card is acceptable, even though “personal liability” card • Why the reminder? • A professor of mine makes his own car reservations at with Hertz, utilizing a personal credit card (we do not have corporate cards) and the Cornell Corporate Number. He has never had an issue with Hertz charging tax, when traveling this past weekend, the Hertz clerk referred to the policy of using a Corporate Card and said that sales tax would be charged, in the end the professor dealt with a different clerk who did not charge tax.

  5. Business Activities (seeking a Better understanding) • Questionnaires • Surveys • Interviews • Wrap-sheet development

  6. Exemption Certificates (By State) • Colorado (NYS 119.1 honored) • Connecticut (SUF-185 (#E-7552) • Connecticut – preferred (CERT-112, Exempt Purchase of meals and lodging) • District of Columbia (FR-331, Cert # 8200-0079972-001) • Florida (DR – 14, expires 12/31/13) • Illinois (Exemption Letter from Illinois D.O.R., expires 06/01/11) • Kentucky (Form 51A127) • Massachusetts (ST-5 or ST-2, expires 01/02/15) • Michigan (Form 3372 & Letter from Michigan Dep’t of Treasury) • Missouri (Letter from the State of Missouri) • New Jersey (ST-5 & Certificate of Authority) • New York (ST-119.1 (EX-106514)) • North Dakota (Exemption Letter (#E-5513)) • Pennsylvania (REV-265 AS, expires 10/31/2013) • Rhode Island (Certificate of Exemption Letter (#6047)) • Tennessee (IRS & NYS exemption forms are honored (Determination Letter & ST-119.1)) • Wisconsin (Certificate of Exemption Letter (# EX-106514))

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