Disbursement Services Section (APY)
POLICY 6
Effective Date: 07/01/1993
Last Modified Date: 05/01/1995
General
The 1991 Session of the North Carolina General Assembly amended Section 105-164.14 (c) of the General Statutes to provide that "constituent institutions of The University of North Carolina may obtain ... a refund of sales and use tax paid by them on or after January 1, 1992, for tangible personal property acquired by them through the expenditure of contract and grant funds."
University Policy
This policy for paying sales and use tax will allow departments with contract and grant accounts to have full use of those funds. The tax portion of purchases from contracts and grants accounts will be automatically charged to and paid from a special trust fund account. The trust account will in turn receive any sales and use tax refund when the State reimburses the University.
Contract and grant transactions charged to accounts beginning with ledger number 4 or 5 plus selected accounts in ledger 6 will not be charged sales and use tax on purchases made from those funds.
Exceptions
Accounts in range 5-43000 to 5-44799, University Faculty Research Grants, are exceptions to this policy and will be charged sales and use tax.
Return to Disbursement Services Section Contents
Return to Business Manual Table of Contents