Sales Tax Rate Changes Effective 4/1/17

From:  Bobbi McCracken, AVC Business & Financial Services and Controller
Sent: Thurs, Mar 23, 2017 5:50 PM
To: MSOADM and eBuy Transactor Users Lists
Subject: Sales Tax Rate Changes Effective 4/1/17

With the approval of the City of Riverside's Measure Z in November 2016, new sales tax rates go into effect on April 1, 2017. The new tax rates will impact department procurement transactions and department sale of goods/merchandise.

  • On April 1, 2017, sales tax rate in the City of Riverside will increase by 1% from 7.75% to 8.75%. This increase is effective through 2036. The new sales tax rate 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 April 1, 2017. Accounts Payable will process payments using the appropriate tax rate based on vendor invoices dates (i.e. 8.75% on invoices dated 04/01/2017 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 the new rate. For ProCard purchases, use tax will be accrued at the new tax rates on out-of-state purchases beginning April 1, 2017. 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 selling 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 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 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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