State Sales Tax Procedures
Whenever a retail sale is made, state sales tax should be collected from the buyer(s). The list below of states where the University is reporting and the applicable rates will assist you with the collection process. The following procedures should be followed:
- Sales to the buyers in the states listed below are subject to tax unless the buyer presents a tax exemption certificate. In order to deposit the cash and record sales revenue and sales tax, you should record the revenue (before sales taxes) to the account you have selected for revenue recognition. The tax collected should be recorded into one of the accounts listed below based on the state location of the purchaser/ buyer.
- Send the Tax Office a memo indicating the amount of total sales revenue (including sales not subject to sales tax), taxable sales, and the related sales tax collected, see the sample form attached. Please send the memo to: Tax Office | 3910 Keswick Road | Suite N4327B | Baltimore, MD 21211 or fax to 443-997-8538 by the 8th of each month. This will allow our office to file the sales tax returns on time.
- The Tax
Office remits the sales tax collected & reports to the appropriate
states. Please indicate total cumulative sales and collected tax
since inception, and the account into which the gross proceeds
were credited. Monthly, the Tax Office remits all state sales tax
using the above procedures.
|State||Fund||Cost Center||G/L Account||Sales Tax Rate||Local Tax|
|New Mexico||1010001005||1000100001||201831||5.13%||* YES|
|New York||1010001005||1000100001||201815||8.375%||* YES|
|North Carolina||1010001005||1000100001||201823||4.75%||* YES|
* Log onto the State's Department of Taxation website and download the local sales tax rates.
**Texas local tax is sourced from the location of the retailer. No local tax for internet and mail order sales.
Last update: February 11, 2021