Accounts Payable Policies

Office of Budgets and Finance

AP Policies & Procedures

Tax Considerations

51�� is a non-profit educational institution and exempt from Texas Sales and Use Tax.
Sales and use tax is assessed by all states except New Hampshire, Oregon, Montana, Alaska, and Delaware. Also, the University is exempt from sales and use tax in Indiana, Florida, Massachusetts, Mississippi, New York, and Tennessee. See 51�� Tax Policy 5.2.
Hotel Occupancy Tax Exemption Certificate should be completed and submitted for in-state hotel accommodations.
Payments to individuals must be made to the individual’s legal name, not to a nickname or alias.
Stipend payments are considered financial aid to currently enrolled 51�� students; there is no work requirement. The recipient of the payment is responsible for reporting the income.
Most travel expenses paid for student travel are considered taxable. Exceptions require the student certification for business related travel form and may also require review from the Tax Compliance office.