Chapter 2. Accounting Services
Section 2.8. Accounts Receivable

2.8.2.4. Calculation of Sales and Use Tax

Currently, all University activities, where payment of sales or use tax must be made, with the exception of those equipped with a cash register which records sales tax separately on the register tape, include the tax as a part of the sales or rental price.

Sales tax, when included in the sale or rental price, is calculated by dividing the sales subject to tax by 1.06 and multiplying the result by .06 to obtain the amount of the tax.

Contact Accounting Services for the tax collection schedule to be used by those activities which must determine the amount of the tax to be added to the sale or rental price.