Rice - Purchases
Texas Home State Exemptions
Rice University is exempt from Texas sales and use tax on purchases that further the University's exempt purposes. This Certificate should be used exclusively for qualified business purchases and must be handled in strict accordance with Texas State Law and University Policy.
Rice's TX Sales and Use Tax Exemption Certificate
- The Certificate is valid only for purchases made within Texas or shipped to Texas (for out-of-state exemptions, see the section below)
- The Certificate is good for the purchase of tangible goods and certain taxable services
- The Certificate does not apply to:
- Purchase, lease, or rental of a motor vehicle
- Purchase of liquor/alcoholic beverage
- Items of a personal nature, e.g., meals, toiletries, clothing, and laundry services
- For a tax-exempt purchase, Rice Pcard should be used, or the vendor/seller should bill directly to the University
- The Certificate doesn't need a "number" or have a validation or expiration date
- From time to time, when departments make direct online purchases through a vendor's website, it may require completion of Rice's TX Sales and Use Tax Exemption Certificate by following the vendor's online format. Please contact Tax@rice.edu for assistance.
Rice's TX Hotel Occupancy Tax Exemption Certificate
- Exemption from TX state‐level hotel occupancy tax only
- No exemption from TX local hotel occupancy tax
Out-of-State Exemptions
An exemption is available only in the event the purchase is made on behalf of the University and paid for by University funds, such as a Pcard.
The forms listed below can be used to exempt sales & use tax and/or hotel tax imposed by various states. Tax exemptions may apply to Rice remote employees outside of TX, and Rice business travelers outside of TX. However, each state's exemptions are subject to its own laws. Please refer to the memo in front of each state form for further guidance. For states not listed below, an exemption is not currently available. As state laws change, the list below will be updated periodically.
| State | Hotel Occupancy Tax Exemption | General Sales Tax Exemption |
|---|---|---|
| Colorado | Form | Form |
| Connecticut | Form (three weeks notice required) | Form |
| Florida | Form | Same Form |
| Illinois | N/A | Form |
| Indiana | Contact Tax Office for online request | Contact Tax Office for online request |
| Kansas | Form | Form |
| Massachusetts | N/A | Form |
| Michigan | Form | Same Form |
| New Jersey | Form | Same Form |
| Ohio | N/A | Form |
| Tennessee | Form | Same Form |
| Utah | Form (for purchases > $1,000) | Same Form |
| Wisconsin | Form | Same Form |
| Wyoming | Form | Same Form |
Rice - Sales
Rice must collect and remit Texas sales use tax on all taxable items it sells.
Rice has a state-issued Texas Sales and Use Tax Permit.
Rice can qualify for two one-day tax-free sales or auctions each calendar year. The exemption does not apply to items sold for more than $5,000 unless the item is manufactured by Rice or is donated to Rice and is not sold back to the person who donated the item.
TX taxable sales (6.25% state tax plus up to 2% local tax): This applies to all retail sales and leases/rentals of most tangible personal property unless exceptions apply. Services, in general, are not taxable unless specifically listed as taxable services by the state of Texas.
Examples of taxable sales:
- Any photocopies charged for a fee
- Charges to the general public for parking
- Rental of furniture, table, and chairs
- Income from the lease of lab equipment (without an operator)
- Food, candy, and soft drinks sold directly or through vending machines
- Sales of used office furniture, laptops, equipment, etc., on a Rice online platform
Rice selling departments shall record all taxable revenue (including TX sales tax collected) to the revenue account for Sales Subject to TX Sales Tax on a timely basis. The Tax Office files quarterly TX sales and use tax returns, and remits taxes to the state.
Questions?
Contact Tax@rice.edu