Financial Services Manual (FIN)

[horizontal rule]

Effective: 12/31/1992

Revised: 7/1/2019

[horizontal rule]
[ASU logo]

FIN 120: Sales Tax Exemption for Certain University Purchases

[horizontal rule]

Purpose

[horizontal rule]

To provide information about the transaction privilege tax exemptions on certain university purchases

[horizontal rule]

Sources

[horizontal rule]

Arizona Revised Statutes § 42–5061
University policy

[horizontal rule]

Policy

[horizontal rule]

Arizona universities are not exempt from paying applicable sales/TPT taxes on purchases of goods within the State of Arizona. The universities also are responsible for paying use tax to the Arizona Department of Revenue for applicable purchases made from out-of-state vendors.

Some technical exemptions apply to auxiliary operations, e.g., the purchase of books by the ASU Libraries. State statute also provides for exemption from state sales and use tax on “machinery and equipment used in research and development. “This statutory exemption does not apply to expendable supplies; janitorial equipment and hand tools; office equipment, furniture, and supplies; tangible personal property used in selling and distributing activities; motor vehicles; shops, buildings, docks, depots, etc.; and motors and pumps used in drip irrigation systems.

Along with the requisition, the cost center manager also must provide to Purchasing and Business Services a signed Research & Development Form with a brief statement identifying the research area in which the equipment will be used and a representation that the planned use for the equipment complies with the exemption provisions of the law. This form should be attached to the request.

If a subsequent sales tax audit disallows the exemption from transaction privilege taxes, the department originally ordering the equipment will be charged for the unpaid taxes.

[horizontal rule]

Cross-References

[horizontal rule]

For additional information on state sales tax, see FIN 108, “Sales Tax.”

For additional information on state and use tax, see the Purchasing and Business Services Policies and Procedures Manual—PUR 602–07, “Sales and Use Tax.”

  skip navigation bar


FIN manual | ASU policies and procedures manuals | Index of Policies by Title | FIN manual contact | Financial Services Web site

Back to Top

Valid HTML 4.01 Transitional