Unlike the University of Georgia, the University of Georgia Foundation is not exempt from sales and use taxes. It is the responsibility of the person requesting the expenditure or reimbursement to include applicable sales tax and inform the vendor that the Foundation is not exempt from such taxes. Any expenditure paid directly to the vendor by the Foundation must include applicable sales taxes. Any individual who incurs a business expense to be reimbursed by the Foundation must be sure to pay applicable sales or use tax. Check requests submitted to the Foundation with invoices that do not include sales tax will be returned for correction for all in-state (Georgia) vendors. For out-of-state vendors or web purchases, the applicable county use tax rate will be added and expensed to the appropriate Foundation fund.
Sales tax is applied to any "sale." Sale means any transfer of title or possession, transfer of title and possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means of any kind of tangible personal property for a consideration and includes fabrication, furnishing, repairing, or servicing tangible personal property and transfer of possession without transfer of title [per State of Georgia Department of Revenue O.C.G.A. 48-8-2(8)].
Use tax is applied to any “use” meaning the exercise of any right or power over tangible personal property incident to the ownership of the property. Use tax includes the use, consumption, distribution, and storage of tangible personal property
[per State of Georgia Department of Revenue O.C.G.A. 48-8-2(12) & (13)]
The expense of the sales and use taxes will be charged to the Foundation account receiving the income or incurring the expense.
Items sold at auction are essentially a purchase, and as such will trigger state sales tax. Per Georgia state law, the applicable sales tax for each item sold at auction will be charged back to the appropriate Foundation fund and remitted to the state. Please note that Foundation funds cannot be used to purchase items for auctions; such items must be donated or purchased by other means.
More information on applicable sales and use taxes on income or expenses can be found at the Georgia Department of Revenue homepage. Please contact the Expenditure Control Department within the Foundation Office for questions.