ASB Sales and Use Tax Guidance 2

Email Sent on Thursday, August 18, 2016 3:02pm from Jenny Salkeld, Chief Financial Office

Colleagues,

As noted in the communication below on April 7th, the Finance team prepared the attached guidance regarding the accounting of sales taxes for concession sales by the ASB. Please note that if you are purchasing concession items for resale from locations such as Costco and Smart & Final that these vendors should have a resale certificate on file so that they do not charge the ASB sales tax. Sales tax is factored upon the sale of the concession and then reported in the quarterly tax return that the District remits to the State.

If you have any specific questions on this matter please contact Anna Day at 619.725.7590.

Thanks!

Attachments:
Pages from Reg 1603 Taxable Sales of Food Products
Ch4 Art 1 Sec 6363 Meals

Jenny Salkeld
Chief Financial Officer
San Diego Unified School District
4100 Normal Street, Room 3150
San Diego, CA 92103
Direct: 619.260.5443
Fax: 619.725.7692
[email protected]

From: Salkeld Jenny
Sent: Thursday, April 07, 2016 12:59 PM
Subject: ASB Sales and Use Tax Guidance
Importance: High

Colleagues,

The Finance team has been receiving questions regarding the accounting of sales and use taxes for ASB transactions. Below are a few considerations for your reference:

  • Sales Tax
    • Any tangible good purchase that will be used for resale is not subject to sales or use tax. As noted in the attached Board of Equalization publication, you must provide the vendor with the District's sales and use tax permit. The permit number is 25065709 and is also attached to this email for your reference.
      • An example is the purchase of PE clothes that will be resold to students.
        • Invoices from the vendor should not include taxes.
          • If an invoice includes taxes, please contact the vendor to adjust the tax and reprocess the invoice. You cannot note a "credit" on the invoice.
        • Taxes are only remitted on the sales generated and are remitted to the Financial Accounting department quarterly.
  • Use Tax
    • If the goods from a purchase are not to be resold, you must ensure that the invoice notes sales tax. If no sales tax is listed, use tax is required to be paid separately. Use tax must be added at the same rate as the state's sales tax and paid quarterly. These taxes are remitted to the Financial Accounting department quarterly.
      • An example is a purchase made on Amazon or Oriental Trading websites. Both of these vendors typically do not include sales tax.
  • Concession Sales
    • This reflects purchases of concessions where admission for entrance is charged (e.g. football games).
    • The Finance team is currently reviewing this requirement and will be providing further guidance in the upcoming weeks.

If you have any questions please contact Anna Day at 619.725.7590.

Thank you!

Jenny Salkeld
Chief Financial Officer
San Diego Unified School District
4100 Normal Street, Room 3150
San Diego, CA 92103
Direct: 619.260.5443
Fax: 619.725.7692
[email protected]