HBP Part 10.3.9. Taxes

Handbook of Business Procedures

Date published: June 19, 2012
Last revised: March 29, 2019
Issued by: Federal Reporting

10.3.9. TAXES

A. Sales Tax

If the center sells tangible personal property to external users, then sales tax is applicable. A tax must be collected on all cash sales involving tangible, personal property. The Texas State Comptroller defines “tangible personal property” as something that can be seen, weighed, measured, felt or touched, or that is perceptible to the senses in any other manner, and this includes computer programs. To determine if sales taxes are applicable, contact Financial Accounting Reporting (FAR).

B. Unrelated Business Income Tax (UBIT)

If goods or services are charged to external users at more than cost, the university may have a liability for UBIT. If you have any questions regarding UBIT, please contact the Office of Accounting and Financial Management.



Part 10. Costing - Table of Contents