Sales Tax Information
The university is not sales tax exempt.
The State Board of Equalization requires USC to pay California sales/use tax on all taxable transactions (i.e. tangible, non-edible items).
For taxable purchases that were made with non-California merchants that did not charge sales tax, Disbursement Control & Accounts Payable will pay (accrue) 8.25% Los Angeles sales tax.
Sales Tax on Procurement Cards
For Procurement Card transactions with non-California merchants that were not charged California sales/use tax at point-of-sale, a representative from Disbursement Control & Accounts Payable may contact the applicable Procurement Cardholder for invoice/receipt information and pay (accrue) Los Angeles sales/use tax when required. If Disbursement Control & Accounts Payable does not receive a response to such an inquiry, 8.25% sales tax will be accrued. Sales tax accruals cannot be reversed after 60 days. Therefore, it is important for departments to carefully and frequently review Procurement Card sales tax accruals on their ASRs and notify Disbursement Control and Accounts Payable within the 60 day period of any incorrect accruals.
| Sales/use tax will be paid using the Procurement Cardholder's corresponding USC account when the transaction meets all of the following criteria: |
| The transaction was $500 or more, including tax and delivery |
CA sales/use tax was not charged |
| The transaction was taxable |
A non-CA merchant was used |
| Sales Tax is paid via a journal entry (XX-025P) |
Sales Tax on Purchase Orders
Purchasing Services will automatically accrue Los Angeles sales tax on invoices for items shipped to California by non-California suppliers if sales tax was applicable but not inoviced. An explanation to the non-California supplier will be provided when needed.
Note About Los Angeles Sales Tax
Los Angeles sales tax is accrued, even if goods were delivered outside of Los Angeles. However, if the vendor's initial invoice included a non-Los Angeles sales tax amount for a non-Los Angeles delivery (e.g. Orange County), then the non-Los Angeles sales tax would be considered correct and would not be adjusted by Disbursement Control & Accounts Payable.