2.16.1—Collection and Deposit of Sales and Use Taxes

Effective: 07/02/2014
Senate Proposal: No
Responsible University Officer: Executive Director, Financial Services and Operations
Responsible Office: Financial Services and Operations

Introduction

All University departments engaged in retail sales or rental transactions must collect and deposit sales and use tax.

Most departments have cash registers which calculate the tax. For units that do not have such cash registers, the tax must be calculated.

Process

Per departmental procedures:

1. At the point of sale and/or rental, collect the applicable tax. If a sales tax exemption certificate is received from an individual or organization, the sale is not taxable. The individual or organization must complete a Michigan form 3372 form.

Note:
To calculate the tax when the tax is included in the sale or rental price:

1) Divide the sales subject to tax by 1.06 and multiply the result by .06 to obtain the amount of the tax.

To calculate the tax manually:

1) Multiply the sales subject to tax by .06.

1. Prepare the sales and rental revenue and applicable taxes by either completing the Cashier's deposit slip or the departmental remittance report.
2. Deposit the funds at the appropriate depository, either the Student Service Center or the Memorial Union Cash Office.

NOTE: Departments must keep all supporting documentation used in completing deposits for a period of seven years.

Forms and Instructions

In support of this policy, the following forms/instructions are included:

Form:

• Michigan Form 3372 and Instructions are found: https://www.michigan.gov/documents/taxes/3372_216612_7.pdf

Revisions