Rice University purchases are exempt from paying State of Texas Sales Tax. Click here to view the Rice University Texas Sales and Use Tax Exemption Certificate.
Departments that sell property, items, and/or services considered taxable under Texas sales tax laws are required to collect sales tax from customers. Rice, in turn, remits sales tax payments to the State Comptroller's Office. The Texas Comptroller's Office performs routine audits of sales taxes remitted by Rice. It is important to maintain detailed records which may be requested as part of this audit process.
What is taxable?
According to Texas sales tax law, tangible personal property and taxable services are taxable items. Each sale of a taxable item (i.e., faxes, copies, books, magazines, t-shirts, prepared food, etc.) is taxable unless a specific exemption applies.
How much sales tax do I collect from my customers?
You should calculate the amount of sales tax by multiplying the tax rate (currently 8.25%) by the sales price of the taxable item.
Am I required to separately state the sales tax amount to my customers?
It is preferred that the sales tax amount be separately stated on the invoice or receipt. Otherwise, a written statement is required on the invoice or receipt that the sales price includes sales tax.
Is rounding permitted when computing sales tax?
When you compute the sales tax by multiplying the tax rate to the sales price, you should extend the amount out to the third decimal place. If the third decimal place is equal to or greater than 5, you should round up to the next cent. If the third decimal place is 4 or less, then you should round down to the next cent.
If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying sales tax to the State Comptroller's Office?
As a seller, you are responsible for collecting the tax. Disbursements will remit payment to the State Comptroller's office. If you do not collect and remit the correct amount, Rice may owe any additional tax plus Rice may be assessed penalties and interest. Please notify Disbursements (disbmt@rice.edu) if an incorrect amount is discovered in order that Rice can adjust the sales taxes remitted to the State.
Are delivery or shipping charges taxable?
Shipping and handling charges are taxable if the charges are associated with the sale of taxable goods and services.