Sales Tax Guidelines
Sales made by the University may be subject to sales tax governed by the California State Board of Equalization (BOE). The Controller's Office is responsible for remitting any sales tax due. Departments are responsible for being aware that the sale of certain goods and services may be subject to sales tax. Tax liability costs will be expensed to the department conducting the business activity.
According to the BOE, taxpayers should maintain records showing gross receipts from all sales of taxable and nontaxable personal property, all exemptions claimed, and the total purchase price of all property purchased for sale, consumption, or lease in the state. When you make an exempt sale, it is important to remember that the burden of proving that a sale is exempt is upon Pepperdine University. Documentation should be kept that clearly indicates the reason why the transaction was exempt from sales tax. This documentation should include the resale certificate, if applicable.
Per state regulation, all tax records must be kept for a minimum of four years and must be available for examination. However, given the fact that most three year audit periods remain open longer than a year to allow time to respond to the BOE audit findings, a retention period of not less than six years is suggested.
When you submit funds for deposit to the Cashier's Office, the sales tax must be deposited into a specific chartfield string so the Controller's Office can properly remit to the State. The Controller's Office handles the preparation of all necessary sales tax returns.
Contact Jeremy Marrs for current state sales tax rate.