Campus in the fall

Although Marquette is exempt from sales tax on the goods and services it purchases for operations, the university’s tax-exempt status does not extend to resale to other organizations or individuals (students, employees or other organizations and individuals). Unless the organization or individual purchasing taxable goods or services can provide its own certificate of sales tax exemption from the state of Wisconsin, the university is required to collect and remit sales tax on the resale.

Taxable transactions include, but are not limited to, the following examples:

If you are not sure about the taxability of a transaction, please contact the tax and compliance manager at (414) 288-7279.

Calculation of sales tax

The current combined state, county and stadium sales tax rate in Milwaukee County is 5.6 percent.

Sales tax is calculated as follows:
Selling price x .056 = sales tax

Example: A department is selling T-shirts to students for $8. Sales tax per shirt is calculated as $8 x .056 = 0.45. The total charged for each t-shirt sale is $8.45. The $8 selling price goes into the departmental account on the CRV, and the sales tax portion goes into sales tax liability account 01-09050-00000-2127.

In some cases, sales tax can be included in the total selling price, with the total selling price rounded up to minimize the need to keep change on hand. Determining the final selling price must be done carefully to avoid having the university pay sales tax it did not collect from the purchaser.

Example: A department is selling T-shirts to students for $8. Sales tax per shirt is calculated as $8.00 x .056 = 0.45. Total selling price would be $8.45, but the department would rather not keep change on hand. To cover the price of the shirt and the tax, the department will charge $9. The calculation of the selling price and tax amounts on the $9 charge are as follows:

Total sale/1.056 = selling price
Selling price x .056 = sales tax
Therefore:
$9/1.056 = $8.52
$8.52 x .056 = $0.48

The CRV would show $8.52 going into the departmental account and 48 cents going into sales tax liability account 01-09050-00000-2127.

If you have any questions about how to calculate sales tax, please contact the tax and compliance manager at (414) 288-7279.

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