Sales Tax

RIT is exempt from paying sales tax to vendors on most of its purchases in New York State. The rules for other states vary depending on whether the state permits a sales tax exemption, if they will accept a NYS sales tax exemption certificate, and which goods or services are tax exempt. Further information can be found on the Sales Tax Exemption Certificates page in the link below.

To qualify for an exemption, a valid sales tax exemption certificate should be provided to a vendor at the time of purchase. Additionally, purchases are required to be made directly from RIT's funds (i.e. check, P-Card, or Travel Card). RIT sales tax exemptions cannot be used for personal purchases.

Please visit the Sales Tax Exemption Certificates page for additional certificates.

Although RIT is exempt from paying sales tax on qualified purchases for educational operations, it must still collect sales tax on sales to other groups, businesses, or individuals (e.g., students, employees, vendors). Departments/business units that sell taxable goods or services must split the amounts received between revenue and sales tax collected. The sales tax collected needs to be recorded in the sales tax liability object code 32000 for each department. The Tax Department handles the NYS sales tax return filings.

RIT is not currently registered to collect and remit sales tax to other states outside of New York. The Tax Department continues to monitor state requirements related to individual state sales tax filings.

RIT is not required to charge sales tax on clothing and footwear priced below $110 per item.

The sales tax rate charged on campus is 8%, composed of a 4% NYS sales tax and a 4% Monroe County local sales tax. As of March 1, 2023, clothing and footwear items sold for less than $110, along with certain other items specified in NYS Publication 718-C, are exempt from both the NYS and Monroe County sales taxes.

To ensure proper documentation, please indicate “Clothing<$110each” in the first 24 characters of the description when completing the related RIT Deposit ID Form.

RIT departments are required to maintain comprehensive records for all sales subject to sales or use tax.

Required Sales Records:

• Transaction Details: Departments must keep a record of every sale, including the total amount and the applicable sales tax. An electronic copy of supporting documentation should also be retained.
• Daily Sales Records: If no written documentation is provided to the purchaser, departments must maintain a detailed daily record of all cash and credit sales.
• Taxable vs. Nontaxable Goods: When selling both taxable and nontaxable items, departments must clearly identify which items are subject to sales tax on the invoice or receipt.
• Delivery Records: For products or services delivered outside of RIT, departments must keep records demonstrating the delivery location.
• Retention Period: RIT must retain sales tax records for a minimum of three years.

Certain fundraising sales may qualify for the NYS Fundraising Sales Tax Exemption as detailed in NYS Publication 843 (Pages 20-21). This means you might not need to collect sales tax for items sold at your fundraising event. 

To qualify, all of the following criteria must be met:

1. Merchandise Purchase: RIT must purchase the merchandise from a vendor and have title to the products before they are sold to customers.
2. Sales Method: Sales must not be made by a shop, store, or through remote means (e.g., over the phone, mail order, email, internet or similar methods).
3. Sales Frequency: Sales must not be made with regularity, frequency, or continuity (e.g., annual or semi-annual events are acceptable).

If any of these criteria are not met, the event does not qualify for the NYS fundraising sales tax exemption, and sales tax must be collected from the customer and remitted to NYS.

Departments are not required to collect sales tax from purchasers who provide a properly completed Sales Tax Exemption Certificate within 90 days of the delivery of goods or services. It is Important to exercise ordinary caution when accepting these certificates. If there are any suspicions that the document provided is fraudulent, or if there are any questions regarding the validity of the certificate, please contact salestax@rit.edu.

Types of Certificates:

• Single Sale Certificate: A purchaser may provide an exemption certificate for a one-time transaction.

• Blanket Exemption Certificate: A blanket exemption certificate can be used for the current sale and for subsequent sales of the same general type to the same purchaser.

Exemption certificates help explain why tax was not collected on a specific sale. Departments must retain a copy of the exemption certificate for at least three years from the date of the sale, along with the associated invoice or other evidence linking the certificate to the sale.

Update Requirement: Obtain updated Sales Tax Exemption Certificates from the customer at least every three years.

Important Note: An IRS Determination Letter confirming an organization's 501(c)(3) tax-exempt status does not qualify as a New York State sales tax exemption certificate.