Overview

UT, as a state agency, does not pay state sales tax inside Texas.  There are some exceptions listed below, but this is the default.

This means that if state tax appears on an invoice or reimbursement receipt, it will not be paid.  If it appears on a com card receipt, the user will need to request a refund from the merchant immediately or personally reimburse UT for the tax. 

Tax-Exempt Form (not hotels)

The Tax Exempt Form is a simple form that you can fill out and give to sellers to prove UT’s tax-exempt status, after which they will not charge tax.  It can be handed to them in person (in which case they will keep it), or on-line. 

If a seller refuses to exempt you from state sales tax, you cannot use that seller.  This is very rare.

Tax-Exempt Number

If a vendor requests UT’s “tax-exempt number” you can provide UT’s FEID #: 74-6000203.  It’s the closest thing there is a tax-exempt number.

Hotel Tax Exemption Form

Claiming tax exemption at a Texas hotel requires a different form, the Hotel Tax Exemption Form.  Again, if given in person, the hotel will keep it.

If the hotel is outside Texas, state tax is allowed.

When state sales tax is allowed

Times when state tax is allowed on a receipt:

·       Food and drink bought at restaurants (no stores, only restaurants)

·        Most (not all) travel costs.  See TRAVEL section.

·       If a purchase is delivered to an address outside of Texas, or you but it while outside of Texas. This includes hotels outside of Texas.

No tip on a UT payment, be it com card, invoice or reimbursement, can be more than 20% of the pre-tax total.  If it is, the extra amount will not be reimbursed.  Or in the case of a com card charge, the user will have to personally reimburse UT for the extra amount.