Departmental Business Management Guide - Sales Taxes

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

The University’s Tax Administration section of the Controller’s Office is responsible for filing the University’s monthly sales and use tax (sales tax) returns with the State in a timely manner. The State of Florida imposes a 6% percent sales tax on taxable in-state purchases of goods and certain services. Counties are permitted by local referendum to levy a local option surtax of up to 2% on these same sales. State and local sales taxes collected by the university during one month must be remitted to the Florida Department of Revenue no later than the 20th day of the following month. Due to the annual volume of taxable sales and tax collected, the University is required to file a consolidated sales tax return (Form DR-15CS), which reports the amount of gross, exempt, and taxable sales and sales taxes collected by departments on an aggregate basis.

Additionally, Tax Administration is responsible for assisting departments during sales tax audits and answering questions on sales tax issues. The University is audited by the Department of Revenue; generally once every five years. The tax auditors will visit each registered sales tax location to review departmental records documenting tax collections and remittances

University Guidelines

Departments should be aware that the sale of certain goods or services may be subject to State sales tax. Before a department can collect sales taxes, they must be officially registered with the Department of Revenue. Departments must contact Tax Administration in advance of any sales activity to ensure that they are properly registered and trained.

(Policy OP-D-2-B – Cash Management)

Tax Administration is the official designated representative for all contact between the University and the Department of Revenue. Departments should forward/refer all questions and correspondence involving the Department of Revenue to Tax Administration in a timely manner.

Purchases made by the University are exempt from Florida sales tax. Vendors should keep a copy of the University’s Consumer's Certificate of Exemption (Form DR-14) for their records in order to document this exemption. Occasionally, a vendor will ask for a copy of a department’s Annual Resale Certificate (Form DR-13) to document an exempt sale. These forms are only issued by the Department of Revenue to the University departments registered to collect sales tax. A department receiving such a request can obtain this form from Tax Administration.

Internal Controls

• Ensure the department is properly authorized by the Department of Revenue before collecting any sales taxes.
• Ensure all employees collecting sales taxes have been properly trained by Tax Administration.
• Ensure that the proper rate of sales taxes is charged on all valid transactions.
• Ensure that all sales taxes collected are properly documented and that accurate records are retained for audit purposes.

Departmental Responsibilities

The departmental responsibilities listed below apply to the departments officially registered by the Department of Revenue as sales tax collection locations.

• Providing the monthly sales tax information requested by Tax Administration each year in January or February on the spreadsheet provided. The timely return of this information to Tax Administration is imperative in order to avoid penalties and interest assessments to all sales tax collecting departments.
• Ensuring sales tax records from June 1, 2007 going forward are on hand or readily available for audit purposes.
• Contacting Tax Administration whenever there is turnover of employees with sales tax collection or recording responsibilities.

Resources

• University Policy OP-D-2-B – Cash Management
• Tax Administration
• Frequently Asked Sales Tax Questions
• Florida Sales Tax Law and Administrative Code
• Sales & Use Tax Rates by County
• FSU Consumer's Certificate of Exemption

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