SRAS Provides Clarification on Sales Tax Charges

Sales Tax Charges  

If Kentucky State sales tax is charged on goods/services, the sales tax must be charged to a cost center. It cannot be charged to a grant.  

This applies whether the charge is a Procard charge/edit or a reimbursement to an individual that is being processed for a purchase that person has made out-of-pocket.  

Sales tax on travel expenses (ex: airfare, car rental, etc.) along with hotel and tourism taxes can be charged to a grant.  

When Kentucky’s tax exempt status is recognized by other states, it is preferred that sales tax on out of state transactions not be paid. If out of state sales tax is charged, it can be charged to a grant.