Generally the University is considered tax exempt by the State of Michigan for most purchases of tangible personal property that are to be used by the University in furtherance of its mission.  However, the University is liable for sales tax when the University provides food or beverage for a fee to non-students as a result of a banquet or other University event, regardless of whether the event is held on or off campus.  If there is a fee charged (ticket, registration etc.) or a donation required to attend the event where food and beverages are served to non-students, sales tax applies.

When food is provided by a caterer, the caterer may add sales tax to the University's bill.  If the University claims a sales tax exemption for resale on the caterer's purchase, the University is responsible for remitting sales tax on the fees collected.

To ensure that the University is in compliance with Michigan State Law, the 6% sales tax must be remitted to the University's Director of Tax Management, in Fiscal Operations.  Deposit the ticket revenues as normal and provide the account the revenues are to be deposited into.  A Journal Voucher will be done by Fiscal Operations to withdraw the funds and remit to the State of Michigan on a monthly basis.

Each Department must keep detailed records to substantiate the transactions in the event of an audit by the State.  By the 12th of the following month, a summary of events by date, title, revenues generated and tax collected must be submitted to the Tax Department.  The Tax Department will be responsible for all tax filings and remittances.

When you complete the Banquet Event form and check "Yes" to the question on whether the event is ticketed, The Tax Department automatically receives a copy of your PO.  However, if the Tax Department does not contact you, be sure to contact them upon completion of the event.  Include a statement showing the total revenue received and the amount being submitted for remittance to the State of Michigan.

When you complete the Banquet Event form and check "Yes" to the question on whether the event is ticketed, the Tax Department automatically receives a copy of your PO.  However, if they do not contact you, be sure to contact them upon completion of the event.  Include a statement showing the total revenue received and the amount being submitted for remittance to the State of Michigan.

If you have questions, please contact Kenneth Doherty, AVP for Procurement, at 313-577-3756 or by e-mail at ken-doherty@wayne.edu