While Michigan State University, as a purchaser, is tax exempt we are still required to collect and remit sales tax on sales and rentals, where appropriate. If your department makes sales (frequent or occasional), please consult Manual of Business Procedures Section 50 Sales and Use Tax.
Important reminders:
- Sales tax is charged based on the destination of the sale. If the purchaser picks up an item at a MSU location, Michigan Sales tax should be collected and remitted. If the goods are shipped to another Michigan location, Michigan sales tax should be collected and remitted. If the goods are shipped to a location outside of Michigan, then Michigan sales tax does not apply.
- The Sales and Use Tax Account where collected sales tax must be deposited to is AD023236. Collected Sales tax should be moved in a timely manner so that monthly and annual reporting to the State of Michigan is accurate (recommended timing is within 1 month of collection).
- Most vendors will require a completed Form 3372 Sales and Use Tax Certificate of Exemption before allowing exemption on MSU purchases. The payment must come directly from MSU for an allowable exemption.
- If your department accepts credit card sales, then sales tax that is collected will need to be manually moved to the sales tax clearing account with a KFS document (either DI or GEC) on a timely basis.