Your Department, CSU, Chico

Project Director Advisories

11.30.2005 -Use Tax Payments on Out-of-State Purchases

In order to more effectively manage projects that make out-of-state purchases the Foundations are initiating a new procedure.

In the past, payments to the State Board of Equalization (equivalent to 7.25% sales tax) have been charged to projects approximately one to two months after the purchase has been made. This has occasionally resulted in over-expenditure of projects and mis-coding of the payment (charged to 1460) resulting in journal entries.

As a result, the Foundation will now be direct charging the expense at the time of payment. On check requests or purchase orders you will now see the following take place:
96000-2152 ($the amount of the tax)
your project/object $the amount of the tax
This coding will be entered by either the Sponsored Programs Office or the Foundation Administrative office.

Please contact us if you have questions regarding this new procedure. We think you will find it helpful in managing your projects.

If you have questions about this message, you may contact The Office of Sponsored Programs at 898-5700 or The Research Foundation Administration at 898-6811 or simply reply via email.
Thank you

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