UCR

Accounting



Sales Tax Rate Changes


From:  Bobbi McCracken, AVC Business & Financial Services and Controller
Sent: Fri, Dec 23, 2016 4:50 PM
To: MSOADM and eBuy Transactor Users Lists
Subject: Sales Tax Rate Changes

With the expiration of Proposition 30 and the approval of Measure Z, several sales tax rate changes will occur over the next few months impacting department procurement transactions and the sale of goods/merchandise.

  • On January 1, 2017, the .25% sales tax rate increase associated with 2012’s Proposition 30 will expire. In Riverside County, the sales/use tax will decrease from 8.00% to 7.75%. The decrease applies to all items purchased AND sold by the University that are subject to sales tax. Please note the sales/use tax rate associated with the Partial Sales Tax exemption will remain at 3.8125%.
  • On April 1, 2017, sales tax rate in the City of Riverside will increase by 1%; therefore, the sales tax rate will increase from 7.75% to 8.75%. This increase is associated with the passage of Measure Z and is effective through 2036. The increase applies to all items purchased AND sold by the University that are subject to sales tax. In addition, the sales/use tax rate associated with the Partial Sales Tax exemption will increase from 3.8125% to 4.8125%.

For purchases, eBuy will be updated with the new sales tax rates on January 1, 2017 and April 1, 2017 respectively. Accounts Payable will process payments using the appropriate tax rate based on vendor invoices dates (i.e. 7.75% will be used on invoices dated between 1/1/17-3/31/17 and 8.75% on invoices dated 4/1/2017 or after). Depending upon the purchase order creation date, payments may differ from the original purchase order amount; it is anticipated the majority of the discrepancies related to sales tax will occur in the first sixty days of applying each new rate. For ProCard purchases, use tax will be accrued at the new tax rates on out-of-state purchases beginning January 1, 2017 and April 1, 2017 respectively. Questions regarding the application of the new sales rates on purchase orders should be directed to Gae Purvis, Interim Procurement Manager, at gae.purvis@ucr.edu; questions regarding payments using the new sales tax rate should be directed to Aver Smith, Accounts Payable Supervisor, at aver.smith@ucr.edu; questions regarding the ProCard use tax accrual using the new sales tax rate should be directed to Dana Allen at dana.allen@ucr.edu.

Campus departments that sell goods/merchandise are responsible for the correct application and collection of sales tax. All campus departments (e.g. Dining, Mail Services, P&R, etc.) must begin applying the new sales tax rate of 7.75% on January 1, 2017 and 8.75% on April 1, 2017 to avoid penalties. For those operations utilizing cash registers and/or point of sale systems, please ensure the new rates are appropriately implemented on January 1, 2017 and April 1, 2017. Questions regarding the application of the new tax rate on items for sale should be directed to Jerry Monahan at jerry.monahan@ucr.edu.

For additional information on the sales and use tax rates, please visit the State Board of Equalization California City & County Sales & Use Tax Rates webpage


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