Frequently Asked Questions

UNIVERSITY CONTROLLER

Tax Compliance @ SMU

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FAQ

Policies and Procedures

Sales Tax Exemption

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Non-Payroll Payments

What is the definition of a "stipend payment"?

What is the rate of reimbursement for mileage?

For which states does Southern Methodist University have sales tax exemption certificates?

Under what circumstances would Southern Methodist University pay sales tax?

Does the Texas Hotel Occupancy Tax Exemption Certificate exempt Southern Methodist University travelers from all hotel taxes?

Do Southern Methodist University travelers have to pay sales tax on meals when traveling on University business?

Do Southern Methodist University travelers have to pay sales tax on purchases for business purposes in Texas?

Question: What is the definition of a "stipend payment"?
Answer: A stipend payment from Southern Methodist University is a financial aid award for a currently enrolled Southern Methodist University student for which no work is required.

Question: For which states does Southern Methodist University have sales tax exemption certificates?
Answer: Currently Southern Methodist University has exemption certificates for state sales tax in: Florida, New Mexico, New York, Tennessee and Texas. These may be used for supply purchases for Southern Methodist University business. Copies of the Certificates may be obtained from the Tax Compliance Office by your Financial Officer.

Question: What is the rate of reimbursement for mileage?

Answer: The rate of reimbursement for business miles for travel beginning January 1, 2013 is 56.5 cents per mile. The rate of reimbursement for use of your vehicle to move to a new home beginning January 1, 2013 is 24 cents per mile.

Question: Under what circumstances would Southern Methodist University pay sales tax?
Answer: If Southern Methodist University is renting equipment and its employees operate the equipment, the University issues an exemption certificate and does not pay sales tax. If the University rents the equipment with an operator, it has to pay sales tax.

Question: Does the Texas Hotel Occupancy Tax Exemption Certificate exempt Southern Methodist University travelers from all hotel taxes?
Answer: No. The exemption is valid only in the state of Texas and only for the state portion of the hotel tax. The traveler must still pay for the city, county and any other portions of the hotel occupancy tax.

Question: Do Southern Methodist University travelers have to pay sales tax on meals when traveling on University business?
Answer: Yes.

Question: Do Southern Methodist University travelers have to pay sales tax on purchases for business purposes in Texas?
Answer: No. Southern Methodist University business travelers may use Southern Methodist University’s tax exemption certificate when purchasing supplies for business. Examples include calculators, note pads, pens, and pencils.