USE OF CENTER TAX EXEMPT CERTIFICATE | Policy Manual

6425 - USE OF CENTER TAX EXEMPT CERTIFICATE

In accordance with Ohio law, the Educational Service Center ("Center") is exempt from payment of Ohio's retail sales tax. The Center seeks to prevent waste by ensuring sales tax is not paid erroneously or unnecessarily due to its tax-exempt status.

Purchases of tangible personal property and selected services made by Federal, State, and local governmental employees are subject to the Ohio sales or use tax. The retail sales tax exemption is not transferable to an individual employee of the Center. The exemption applies only when the purchase of goods or services is paid for by the Center using its credit card or other authorized Center account. Purchases directly made by and charged to the Center are considered sales to a public office and are sales tax exempt even if the goods or services are picked up by an employee of the Center. Any invoice or bill of sale/receipt should reflect that the purchaser is the Center, and the Center’s credit card or account must be charged. Use of a sales tax-exempt certificate by officials or employees to make purchases for the Center will be approved by the Superintendent in advance.

If a Center official or employee uses a personal credit card or checking account to make purchases on behalf of the Center, the tax-exempt certificate may not be used and sales tax must be paid at the point of sale. Purchases of up to a total amount of $500 made by a Center official or employee using a personal credit card or checking account shall be reimbursed in accordance with Board policy and procedures, provided that the purchase is considered to be for a proper public purpose. If the amount of the purchase and sales tax exceeds this threshold, the purchase must be made using the Center credit card or account and shall be exempt from sales tax.

If sales tax was erroneously charged by a vendor for a Center purchase, the fiscal office will attempt to recover the tax at the point of sale, or file for a refund of the taxed amount with the Ohio Department of Taxation. Erroneous sales tax charges should be reported to the Treasurer promptly when discovered by the official or employee who made the purchase. Failure to adhere to this policy may result in the issuance of a Finding for Recovery.