Tax Exempt, UBIT, and Sales Tax

Tax Exempt:

As a public institution of higher education, the University of Colorado Colorado Springs is exempt by law, from all federal excise taxes and from all Colorado State and local government sales and use taxes when purchasing goods and/or services in the conduct of official University business. (IRS 48.4221-5 and C.R.S. 39-26-114(a) and 203) It is not required that governmental entities present a Colorado issued tax-exemption number in order to make a tax exempt purchase.

 

FEIN Number: 84-6000555
Federal Excise Tax Exemption Register Number: 84-730123K
 
State of Colorado
State Tax Exempt Number: 98-02565-0000
 
City of Colorado Springs
City License Number: E00001021

 

Additional Resources

PSC Tax Exempt Status: https://www.cu.edu/psc/tax-exempt-status-0

State of Colorado Certificate: https://www.cu.edu/psc/policies/state-colorado  pdf icon 

City of Colorado Springs Certificate: pdf icon


Unrelated Business Income Tax (UBIT):

If an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from the unrelated trade or business.

Due to the recent tax reform to the UBIT reporting we are updating our processes and procedures, however, look at some broad guidelines published by the OUC:

https://www.cu.edu/controller/tax-code-changes-2018/unrelated-business-income-tax-ubit


Sales Tax Compliance for Fundraising Events:

Selling general merchandise for a fundraiser are required to collect and pay sales tax.  Sales tax must be paid by the purchaser, and should not be imputed from total sales of your event.  If you hold an auction, sales tax is charged on winning bid (purchase price) or the estimated Fair Market Value of the item.  Keep in mind sales tax is only charged on tangible items not services or gift cards.

For events with a meal and a charge to attend, UCCS is responsible for reporting sales tax on the food/beverage/catering services/audio-visual services.  Please report this information to the UCCS Property/UBIT Accountant to submit the sales tax liability.  You must notify mail to: OfficalFunctions@cu.edu that you are charging an admission/registration fee, and that sales tax applies for your event when paying the event charges.

Link to sales tax calculator:

Sales Tax Calculator

Once your sale is complete or no later than the 10th of the month if ongoing contact Mary Lile to process the sales tax liability.

For more information about fundraisers please see the OUC's webpage:

https://www.cu.edu/controller/university-sponsored-fundraising-events

 

Please contact Mary Lile for questions:

Mary Lile

Property/UBIT Accountant

719-255-3703

mlile2@uccs.edu

 

Last Reviewed on 4/24/2019