The Controller's Office handles sales tax guidance and remittance for the university. For payroll tax related questions, please refer to the Payroll Office.
Sam Houston State University is exempt from Texas sales taxes when purchasing.
Sam Houston State University has a dual exemption as both an educational organization and as a government entity and is therefore exempt from paying sales taxes and state hotel taxes. To qualify for exemption, the purchase must relate to SHSU's exempt purpose. SHSU is not exempt from state sales tax when the purchase is in another state and that state levies a tax.
Departments will complete and sign the the Texas Sales & Use Resale Certificate upon request from a vendor/supplier.
The University must collect sales taxes at the point of sell for goods and services.
SHSU must collect and remit sales tax on all retail sales, leases and rentals of most goods, as well as any taxable services. This includes the hotel occupancy tax. For further details, please contact the Controller's Office.
There are 2 alcohol (mixed beverage) taxes. The permittee (seller) pays the mixed beverage gross receipts tax to the state, and the customer pays the seller the mixed beverages sales tax, which is then remitted to the state.
Mixed Beverage Sales Tax
A customer pays the mixed beverage sales tax on:
- each mixed beverage a permittee sells, prepares or serves, and
- ice and each nonalcoholic beverage a permittee sells, prepares or serves that is mixed with an alcoholic beverage and consumes on the permittee’s premises.
How to collect
This tax can be passed to the customer by adding a line item for the sales tax on the bill or including it in the sales price. This tax is in addition to the "mixed beverage gross receipts tax". The mixed beverage sales tax is not used to calculate the mixed beverage gross receipt tax.
The rate is 8.25%.
Mixed Beverage Gross Receipts Tax
A permittee pays the mixed beverage gross receipts tax based on the total amount received from:
- the sale, preparation or service of mixed beverages, and
- ice and nonalcoholic beverages that are sold, prepared or served to be mixed with an alcoholic beverage and consumed on the permittee’s premises.
Additional charges such as bar set-up fees, bartender fees, and mandatory gratuities in excess of 20% are subject to this tax if the permit holder has a caterer license. This tax does not apply if the permittee only has a wine and beer retail permit.
How to collect
The person or organization holding the mixed beverage permit must pay the mixed beverage gross receipts tax. It cannot be passed onto the customer and may not be added to the selling price.
The rate is 6.7% of gross receipts.
Are we exempt from paying the mixed beverage sales tax?
Yes. Because the mixed beverage sales tax is administered, collected, and enforced the same way as sales and use tax, the same exemptions apply.
Is there a specific mixed beverage sales tax exemption certificate?
No. You use the standard Texas Sales and Use Tax Exemption Certificate (Form 01‐339)
Are we exempt from the mixed beverage gross receipts tax?
No. There are no exemptions to this tax.
When would we pay the mixed beverage gross receipts tax?
If we were the seller of alcohol (the permit is in our name), then we would be required to pay the gross receipts tax. However, this would be highly unlikely.
Tax Form W‐9 is used to provide the University′s correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example:
- Income paid to you.
- Real estate transactions.
- Mortgage interest you paid.
- Acquisition of abandonment of secured property.
- Cancellation of debt.
- Contributions you made to an IRA.
If you need a copy of the SHSU W‐9, please contact the Controller's Office.