Sales and Use Tax | KCTCS

Administrative Procedures

Sales and Use Tax

Policy Number: 5.3.5-P

Current Effective Date: 07/01/2018

Original Effective Date: 07/01/2009

Revision Dates: 07/01/2009, 07/01/2010, 10/04/2018

Revision Number: 3

Revision Summary:

Responsible Official: System Director of Treasury Management

References:

 

1. Purpose

To provide guidance on sales and use tax.

2. Scope

This procedure applies to all KCTCS business units.  

3. General

3.1

KCTCS uses one consolidated Kentucky sales tax number for reporting taxable sales (000004205).

  1. See Kentucky Revised Statutes Chapter 139 and Kentucky Administrative Regulations – Title 103 for sales and use tax laws. 
  2. College Chief Business Officers are responsible for determining whether a sale is taxable before payment is accepted.
  3. Please see KCTCS Office of General Accounting Services to obtain a current Sales Tax Checklist.

3.2

Taxable sales should be recorded in the following accounts:

  1. 43126 Grill Taxable
  2. 43136 Vending Income Taxable
  3. 43146 Concessions Income Taxable
  4. 43148 Cafeteria Income Taxable
  5. 43149 Catering Income Taxable
  6. 43197 Sundries Taxable
  7. 44245 Student Projects Taxable
  8. 44255 Taxable Proceeds from Property Sales

3.3

Sales tax (6%) should be collected and recorded in account 24000, sales tax payable.

3.4

The KCTCS Office of General Accounting Services prepares the Sales Tax Return and remits payment to the Commonwealth of Kentucky.