Exemption to Paying Sales and Use Tax

When traveling out of state on RIT business, you may be able to obtain sales and use tax exemptions on expenditures such as hotel accommodations, car rentals and meals. This is an excellent way to stretch your budget dollars and save your department a considerable amount in unnecessary expenditures.

Please refer to the State-by-State Tax Exemptions list, located on the Controller's Office web page, to determine whether or not you will be entitled to a tax exemption when traveling to a particular state. States on the list currently recognize RIT's tax exempt status as a not-for-profit institution and they have provided us with a Certificate of Exemption. (Note that certain states do not charge sales or use taxes.) RIT was unable to obtain a tax exemption for the states noted below the list due to the more stringent tax laws in force in those states.

When you travel to one of the states on the list, you will need to provide a copy of the exemption form to each billing party. Please call the Controller's Office (ext. 5-2383) to request a copy of the appropriate form before departing on your business trip. You may make copies of the exemption form. To avoid delays in checking out from hotels, or when dropping off your rental car, fax the form to the business at the time reservations are made, or when you are checking in.

Sales tax exemptions are available for business use only and may never be used for personal expenditures. Businesses may not honor the tax exemption if you pay cash for your purchase or if you charge your purchase to a personal credit card. Please use your RIT American Express Card or your Citibank Government Travel Card to pay for all business expenses.

Taking full advantage of RIT's sales tax exemption is an excellent way to stretch budget dollars and to save departments and RIT a considerable amount in unnecessary expenditures. As a result, Controller's Office staff in the Student Financial Services, Accounts Payable and Accounting have been instructed not to reimburse employees for sales tax payments when the exemption could have been claimed.

The extent to which any exemption may, or may not, apply is subject to the actual tax laws established by that particular state and will vary considerably from state to state.

If your request for a sales tax exemption was not honored, please include a memo of explanation with your request for reimbursement. When a memo of explanation is received, Controller's Office staff will reimburse you for the sales tax and keep the memo on file for audit purposes.

If you have any questions about the use of tax exempt forms, please call the Director of Payroll and Accounts Payable Services at (585) 475-5580 (e-mail cesatg@rit.edu).