14.72 Out-of-State Sales Tax Exemptions

last updated: 07/01/2004  
Purpose: To provide guidelines and procedures for travel for The University of Arizona employees, students and affiliates.
Policy Owner: Tax Compliance


Purpose:

A few states offer sales tax exemptions to UA employees traveling on University business. These exemptions can be used to avoid paying certain taxes charged by hotels, motels, and restaurants.

The following table lists states that allow for a sales tax exemption and instructions on how to request the exemption. Before an employee takes a trip, review this list, and if an exemption applies, obtain the necessary information to allow the traveler to request the exemption. 

Because most of the states permitting sales tax exemptions do not allow the exemption if payment is made by an individual on behalf of the UA, payment must be made by the University directly.  Therefore, applicability of this policy is limited to circumstances where payment can be made by the University in advance.  See FRS Department Manual, Section 14.11, for information on funding the cost of travel and prepaying expenses.

State Instruction
Kansas Complete a School or Educational Institution Exemption Certificate and present it to the hotel or restaurant.
Florida Provide vendor with a copy of Consumer's Certificate of Exemption.  Payment must be made by UA; payments made by an individual on behalf of the University are taxable.
Missouri Print a copy of the document State of Missouri, Exemption from Missouri Sales and Use Tax on Purchases and present it to the restaurant or hotel.
Tennessee Only student groups traveling on university business can be exempt from sales tax in Tennessee.  Faculty and staff cannot use the exemption unless they are traveling with a qualifying student group.  Additionally, student groups having their own bank accounts cannot use this exemption.

For student groups qualifying for the exemption, the dean of the department sponsoring the students must write a letter to the Tennessee Department of Revenue on UA letterhead verifying that the group is from the University of Arizona  and briefly explaining the purpose of the group's travel in Tennessee.  

The letter from the dean should be sent to the Tennessee Department of Revenue well ahead of any scheduled trips so that documents allowing the exemption from sales tax can be obtained.  The letter should be sent to the following address:

State of Tennessee

Department of Revenue

Andrew Jackson State Office Building

Nashville, Tennessee 37242

Additional contact information is available on the Tennessee Department of Revenue website.  

If payment is made using personal checks or credit cards, vendors must charge Tennessee sales tax.

Wisconsin Fill out Wisconsin's Form S-211. In the "Proposed Exempt Use" section, go to the "Other" section, and check the box labeled, "Items or services purchased directly by and used by religious, charitable, educational...organizations holding a Wisconsin Certificate of Exempt Status."  Place UA's Tax Exemption Number on the line provided. The number is ES 43531.
Alaska,
Delaware,
Montana,
New Hampshire, and
Oregon

These states do not charge sales tax, so travel to these states does not require any advance preparation with regard to sales tax:


FRS Departmental Manual ·FSO Homepage ·UAInfo ·14 Travel
maintained by: Cecilia Au
last reviewed: 6/30/04