Collecting Indiana Sales or Use Tax on Sales
Sales of tangible personal property as part of a proprietary activity by Indiana University are subject to sales tax. A few examples specific to IU are Catering, Hotel and Conference Center, Golf Course and any activity customarily associated with being competitive with private enterprise.
The term "tangible personal property" means personal property that: 1) can be seen, weighed, measured, felt, or touched: or 2) is an any other manner perceptible to the senses. The term includes electricity, water, gas, stream, and prewritten computer software.
Proprietary activities, as defined by the state of Indiana, are illustrated as:
Consult the Collection Matrix for specific guidance on what sales are exempt or taxable.
Indiana University is excused from charging tax on sales involving the educational mission for which the institution is granted exemption. The mission falls into these primary categories:
- Teaching and instruction
- Public service
Some transactions exempt from the sales and use tax are:
- Sales for resale
- Sales or rentals outside the State of Indiana
- Sales or rentals to the federal government or their agencies
- Sales or rentals to a non-profit organization providing an Indiana Form ST-105 (note: Department must collect ST-105 and keep form on file for 3 calendar years.)
- Sales of food by IU to an IU enrolled student