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FAQ for University Departments Q: Is the University of Minnesota exempt from sales tax? A: Most purchases made by the University are exempt from sales tax. However, sales of taxable property and taxable services sold by the University are subject to sales tax unless the purchaser is exempt from sales tax. This means University Departments must charge sales tax when making sales of taxable items. Many people have the misconception that because the University is exempt from paying sales tax, they do not have to be concerned about sales tax. However, since we must charge sales tax on sales, like any other business, we need to be aware of what items are taxable and the appropriate tax rate that applies to the sales.
Q: When is the University of Minnesota required to pay sales tax on purchases? A: The University’s sales tax exemption does not apply to:
When the University makes purchases of these items, they must pay sales tax to the seller, unless the items are purchased for resale. If they are purchased for resale, the University needs to collect sales tax when the items are resold.
Q: How do I make a purchase exempt from sales tax? A: Most sellers require that you provide an ST3, Minnesota Department of Revenue Exemption Certificate, that indicates that the University is exempt from sales tax. To qualify for the exemption, the University must pay for the item directly, so either a Purchasing Card or a check from the University must be used to make the exempt purchase. The ST3 is available on here. Several vendors require that an exemption number that they issue be presented at the time of purchase to buy exempt from sales tax. These exemption numbers are found on THIS page of our website. Do not attempt to purchase lodging, prepared food, candy, soft drinks, motor vehicles or solid waste disposal services exempt from sales tax. You could be subject to a penalty if you inappropriately use an ST3 to buy items that we are not qualified to purchase exempt from sales tax.
Q: Are shipping and handling charges subject to sales tax? A: Shipping and/or handling charges relating to sales of taxable items are subject to sales tax. If the item is exempt from sales tax, the shipping and handling charges are also exempt.
Q: What sales tax rate applies to taxable items? A: Minnesota laws impose a sales tax rate based on the destination of the sale. If a buyer picks up an item at the seller’s location, the rate of the seller’s location applies. If the goods are shipped to another location in Minnesota, the rate at the “shipped to” aJanuary 13, 2009 9:21 AMles tax does not apply. For example, if a student buys a backpack in the University of Minnesota Bookstore in Coffman Union, the sales tax rate will be 7.40%. This consists of the 6.5% state rate, the .5% Minneapolis rate, the .15% Hennepin County rate, and the .25% transit improvement tax rate. If the student buys a backpack in the St. Paul Store on St. Paul campus, the sales tax rate will be 6.75%. Only the state rate of 6.5% and the .25% transit improvement tax rates apply because the bookstore is actually in Falcon Heights which does not have a local tax. If, per a phone order, the backpack is shipped from the Coffman Union Store to Golden Valley, Minnesota, the tax rate will be 6.90%, made up of the 6.5% state rate, the .15% Hennepin County rate, and the .25% transit improvement tax rate. If you are unsure about the rate for a particular destination, you can access information at the Minnesota Department of Revenue.
Q: What sales tax rates apply to most purchases made on the various campuses? A:
Some areas also have additional lodging taxes. See the above link for additional information.
Q: A vendor has asked me for an ST3 form. What is that? A: An ST3 is a Minnesota Dept. of Revenue Certificate of Exemption. You can download and print the University's official ST3 signed by the tax director here.
Q: A vendor has asked me for a "Request for Taxpayer Identification Number and Certificate." What do I do? A: You can download and print the University's official W-9 signed by the tax director here.
Q: A vendor has sent me a "Substitute W-9" form, what do I do? A: Please forward the form to us via email, fax, or campus mail. Be sure to include your contact information - name, department, phone, mailing address, and email. We will complete the form with the authorized signature of the Tax Director.
Q: My department received a Form "1099 Misc" - what do I do with it? A: Please forward these forms to the Tax Management Office via campus or postal mail. Our address can be found here.
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FAQ for University Employees
Q: When will I receive my W2? A: These forms will be mailed to you on or before January 31st of each year.
Q: How do I get a duplicate W2? A: University Employees can request a reissued W2 form by logging in at the Employee Self Service Page.
Q: How do I change my withholding? A: University Employees can update their withholding by choosing "Update your W-4 Tax Information" on the Employee Self Service Page.
Q: I have questions about my payroll taxes, who do I contact? A: Contact your department payroll administrator, or check out the Pay & Taxes section of the Office of Human Resources compensation website.
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FAQ for University Students Q: Where can I get information about the Hope Credit and Lifetime Learning Credit? A: Click for the 2006 Education Credit Fact Sheet
Q. When will I receive my 1098T Tuition Report form from the University? A: These forms are mailed on or before January 31st of each year. If you have not received your form within one to two weeks after this date, please contact One Stop Student Services.
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©2007 UniversityTax Management Office University of Minnesota, Minneapolis, MN. All rights reserved. this page was last updated on December 19, 2008 10:33 AM |
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