Tax Exempt, UBIT, and Sales Tax
Tax Exempt, UBIT, and Sales Tax
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
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
City of Colorado Springs Certificate: https://www.uccs.edu/rmd/sites/rmd/files/inline-files/UCCS_Exempt_Cert_COS.pdf
City of Colorado Springs Letter of Exemption: http://www.uccs.edu/rmd/sites/rmd/files/inline-files/springsexempt.pdf
New Fees Imposed by Colorado:
The State of Colorado Department of Revenue imposes a $0.27 retail delivery fee on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or use tax. This includes mailed and shipped within Colorado.
Colorado House Bill HB21-1162 mandated a 10 cent fee be collected for each disposable bag used at the checkout with a few exceptions. Small Store, a store that operates solely in Colorado, has three or fewer locations in the state and is not part of a franchise, corporation, or partnership that has physical locations outside of Colorado. UCCS Fundraising activities and the UCCS Bookstore are considered as a small store, therefore there is no bag fee charged until January 1, 2024.
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:
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. A receipt must be issued with the cost of all items subtotaled, the amount of sales tax charged and the full total. If you hold an auction, sales tax is charged on the lower of (1) the winning bid (purchase price) or (2) 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 OfficalFunctions@cu.edu that you are charging an admission/registration fee, and that sales tax applies for your event when paying the event charges.
**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:
Please contact Mary Lile for questions: