Sales Tax - Policy | Campus Controller's Office | University of Colorado Boulder

1. Purpose

The purpose of this policy is to ensure that CU Boulder complies with all state & local sales tax regulations.

It is the policy of CU Boulder to charge sales tax as required by the law.

Sales taxes are applicable unless specifically excluded by statute or municipal code. The City and State have different rules on these exclusions, but they are generally similar. Any questions regarding taxability should be sent to [email protected]. Additional guidance can also be found here:

The University is exempt from paying sales tax on purchases from its own departments such as internal service centers. These are internal transfers, not sales.
Sales tax can be waived for a customer only if the customer provides a copy of their current tax exempt certificates, both for the State of Colorado and the City of Boulder. The burden of proof for the exemption is on the person asserting the claim of exemption. The sale must be made on the exempt organization’s funds (check, purchasing card, ACH, etc.). Copies of exemption certificates must be kept on file by the department making the sale.
Sales of services (labor) are not generally taxable. Fabrication labor is an exception. If a sale involves both goods and services - such as a repair operation that involves charges for both parts and labor - the parts (tangible property) are taxable, but the service (labor) is not. The seller should list and identify the parts portion of the sale separately from the service portion of the sale. Failure to do this can render the entire amount of the sale subject to sales tax as a comingled invoice.

The amount of sales tax charged depends upon the following factors:

The type of product being sold - Most items will incur the standard sales tax rate. Food service taxes apply only to food service establishments. There are specific rules for accommodations taxes. Admissions taxes do not apply to events sponsored or conducted by CU. Any questions regarding tax rates should be sent to [email protected].
The tax rate in effect at the time of the sale - these are the City of Boulder tax rates. All sales made to destinations outside Boulder City limits must be reviewed prior to the sale. Please contact [email protected] with any questions.

Operations that charge sales tax are required to post a current copy of each license in a conspicuous place. Copies of CU’s licenses are available here. Housing & Dining, Athletics and the CU Book Store also have licenses. The City of Boulder license serves as CU’s certification of exemption for purchases, while the State has a unique certificate of exemption. Since the entire University of Colorado system operates under the same FEIN, we are effectively one organization.
Charging Sales Tax. Sales tax must be listed as a separately stated line item. It cannot be included (grossed-up) in advertised prices. This is not required for vending machine items, however.
When the cash receipt is prepared to record the day’s financial activity, the sales tax liability is listed on a line separate from the revenue. Sales taxes are cash-based (accruals are not applicable), and all taxes received must be remitted to the government by the 20th of the following month. Organizations making taxable sales must keep records for 3 years. These records should include all the details of the sale – date, item, item cost, tax, customer and location. The sales subledger must support the general ledger amounts.