Bulletin: Reduction in Sales Tax Rate (Posted June 13, 2011)

In 2009, California temporarily increased the state sales tax rate from 8.25% to 9.25%. Unless state legislators agree to an extension, the temporary increase expires on July 1, 2011, at which time the rate will return to 8.25%.

In anticipation of the potential change, wherever possible, please schedule shipments of purchased goods for July 1st or later to realize significant savings for the University.

Note – In the event of the decrease, for purchases with invoice dates of July 1 or later, Stanford will pay the reduced tax rate of 8.25%, even for requisition / purchase orders created prior to July 1 which indicate the 9.25% rate. There is no need for you to update the tax rate on the purchase order or invoice. The new tax rate will be automatically reflected on taxable requisitions and purchase orders created on or after July 1, 2011.

Action Required

  • New purchase requisition / purchase orders (Standard, Rapid Purchase Order (RPO) or SmartMart):
    • Consider placing requisitions / orders with shipment / invoice dates of July 1, 2011 or later
  • Existing purchase orders:
    • Standard Purchase Orders – If you have a large value purchase order with a shipment scheduled prior to July 1, 2011, Strategic Purchasing Services may contact you to evaluate whether or not the shipment can be delayed until July 1, 2011 or later
    • Rapid Purchase Orders (RPO) – If feasible, contact the supplier to delay shipment until July 1, 2011 or later and update the delivery date on your RPO (see update your Rapid Purchase Order)
    • SmartMart Orders – No action required

Questions?

For answers to questions about how the new tax rate impacts your purchase requisitions, purchase orders and invoices, please contact the Financial Support Center (3-2772).

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