Presented by: Debby Monninger Tax Compliance Analyst Tirscha Gomez Accountant Sr.

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1 Presented by: Debby Monninger Tax Compliance Analyst Tirscha Gomez Accountant Sr.

2 What is use tax? Who pays use tax? How is use tax paid? How p card use tax is applied? How to locate p card use tax? What to do if duplicate tax is charged? How to locate a use tax reversal? Expenditure codes related to use tax.

3 Arizona Revised Statue imposes use tax upon the purchaser of tangible personal property which is: Used Stored Consumed in Arizona when the purchases was not subject to transaction privilege tax ( commonly called sales tax ). Tangible Personal Property is described as property Tangible Personal Property is described as property which may be seen weighed, measured, felt or touched. Generally tangible personal property can be moved around.

4 Any person who: Used Stored Consumed any tangible personal property upon which tax has not been collected by a retailer, shall pay use tax An Arizona purchaser is liable for use tax on goods purchased from an out of state vendor that did not collect the transaction privilege(sales)tax.

5 Arizona apurchasers s ae are liable for use tax if they purchase goods using a resale certificate and the goods are subsequently use, stored, or consumed in Arizona contrary to the purpose stated on the certificate. Th t l li t h hi h th The use tax also applies to purchases on which another state s sales tax or other excise tax was imposed if the rate of that tax is less than the Arizona use tax rate.

6 Use tax is paid by ASU directly to the Arizona Department of Revenue via monthly reports submitted by the Tax Unit. It i t id t th d f hi h th h It is not paid to the vendor from which the purchase was made.

7 The use tax rate for Arizona is 5.6%. This use tax rate is applied at ASU on tangible personal property bought via: P card transactions Wire transfers PV s

8 A query is run in PaymentNet on these criteria below to find applicable use tax purchases. The PaymentNet file is then reviewed and loaded into y Advantage.

9 On your Advantage Reports the use tax charge will: Have the same expenditure code as the original transaction Have the Last Name of the Employee s card Have the partial name of the company Have the approximate post date of the transaction in PaymentNet

10 If you locate a use tax charge on your Advantage reports and you also have been taxed by the vendor follow the subsequent steps to have your duplicate sales tax reversed. 1. Make a copy of the vendor s invoice showing the sales tax applied to the transaction. 2. On the top of the copy write your agency and the expenditure code the transaction was applied to or print a copy of your Advantage report that show this information. 3. Send or fax a copy to: Tirscha Gomez ( MC: 5812 or Fax: ).

11 A use tax reversal transaction number will always begin with USETX Usually the use tax reversal will be the same amount as the applied use tax by the batch process. If you have trouble locating a reversal call Tirscha Gomez at

12 Remember if your p card transaction is miscoded in PaymentNet there is a possibility that use tax was applied or not correctly applied to a transaction in your Advantage reports. The most popular use tax reversals are for: Conference Registrations Membership Dues Advertising

13 An ASU Department uses a p card to purchase lab supplies from Biotech Inc, located in San Francisco, California. Sales tax was not included in the payment to Biotech Inc. An ASU Department purchases software using a p card from an out of state vendor. Sales tax was not included on the invoice.

14 An ASU Department uses a p card to purchase a subscription to a journal published in New York for ones of its professors. Sales tax was not included on the invoice. An ASU Department uses a p card to pay for an An ASU Department uses a p card to pay for an advertisement in an out of state journal for an open faculty position. Sales tax was not included on the invoice.

15 Debby Monninger: or Tirscha Gomez: or

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