Keep in mind that UCR typically pays sales or use tax on purchases of tangible property, such as equipment and supplies.
Suppliers often fail to include taxes in quotes. Procurement Services will build in sales or use tax unless the department identifies the purchase as for resale, or that the purchase is against a Federal Contract whereby the title is retained by the Federal government. For supplier's who do not collect CA sales tax, UCR Accounts Payable will accrue the use/sales tax and pay it directly to the state.
Sales Tax: Retail sales to UCR by California retailers are subject to sales tax. The obligation for the payment of California sales tax lies with the retailer, not the purchaser. State laws require the retailer to charge sales tax to the purchaser at the time of sale.
Use Tax: A use tax obligation arises when UCR purchases a commodity which is taxable under California State Sales and Use Tax Law, but for which the retailer has not billed, or the retailer is not licensed to collect California sales tax. The current rates for use tax are the same as for sales tax. The liability for payment of use tax belongs to the purchaser (UCR).
