With the passage of Proposition 30, the State of California voters authorized a .25% increase to the sales/use tax rate. In Riverside County, the sales/use tax will increase from 7.75% to 8.00% on January 1, 2013. The increase applies to all items purchased AND sold by the University that are subject to sales tax.

For purchases, eBuy will be updated with the new sales tax rate on January 1, 2013. To comply with state law, Accounts Payable will process payments using the new tax rate on vendor invoices dated January 1, 2013 or after. Depending upon the purchase order creation date, payments may exceed the original purchase order amount; it is anticipated the majority of the discrepancies related to sales tax will occur in the first sixty days of applying the new rate. For ProCard purchases, use tax will be accrued at the new tax rate on out-of-state purchases beginning January1, 2013. Questions regarding the application of the new sales rates on purchase orders should be directed to David Gee at david.gee@ucr.edu; questions regarding payments using the new sales tax rate should be directed to Linda Casteel at linda.casteel@ucr.edu; questions regarding the ProCard use tax accrual using the new sales tax rate should be directed to Dana Allen at dana.allen@ucr.edu.

For sales, campus departments (e.g. Bookstore, Dining, etc) must begin applying the new sales tax rate on January 1, 2013 to avoid penalties. All campus departments that sell goods/merchandise are responsible for the correct application and collection of sales tax. For those operations utilizing cash registers and/or point of sale systems, please ensure the new rate is implemented on January 1, 2013. Questions regarding the application of the new tax rate on items for sale should be directed to Jerry Monahan at jerry.monahan@ucr.edu.

The new tax rate is in effect through December 31, 2016. For more information on the sales tax increase, please visit the State Board of Equalization website: http://www.boe.ca.gov/news/pdf/l344.pdf