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P-Card Sales Tax Information

If a sale originates in California, and possession of the item is taken in California, then sales tax generally applies.

There are cases where a supplier based out of state has business ties to California, and they are also required to charge sales tax. If an out-of-state supplier does not collect California sales tax, the university is required to pay a use tax to the State of California.

The Problem: KFS users sometimes do not document the tax correctly in AggieTravel during transaction reconciliation, and a use tax is assessed on a purchase that has already been taxed by the supplier.

The Solution: If you notice that the transaction has been taxed twice (once by the supplier and once by the system), please complete the KFS Use Tax Accrual Correction Form. Tax Accounting will reverse the duplicate tax from your transaction. 

Incorrect Sales Tax Rate

The rate of sales tax applied to a purchase is based upon the state rate, plus any applicable district tax. The district rate applied, if any, should be based upon where possession was taken. If you believe that a supplier charged the incorrect tax rate, please contact them directly.

If a purchase is being delivered to your department, the tax rate calculated is based on the zip code assigned to the organization associated with the card account number. You can verify the zip code assigned to the organization by using the Organization Lookup (49) in FIS Decision Support.

For more tax information, visit the Tax Accounting website.