Yes. Allowing this is consistent with how we treat components of a fabrication that are under $200 and also aligns with the Equipment Inventory Office's System Policy.
Please include comments to this effect on the requisition.
Yes. Allowing this is consistent with how we treat components of a fabrication that are under $200 and also aligns with the Equipment Inventory Office's System Policy.
Please include comments to this effect on the requisition.
Yes, these items can be purchased as 05-41 due to the fabricated item qualifying for the M&E Exemption. The department will need to provide a comment stating that the items are going into a fabrication and also provide the fabrication tag number.
EIO consulted with the Tax Office on this question. Shipping on loaned equipment is okay to code as M&E tax exempt. The reason for this is that shipping or transportation services bought as a stand-alone purchase are not subject to sales tax. Since there is no underlying cost or sales price (to the University) for a loaned piece of equipment, shipping costs would be considered stand-alone and not subject to sales tax anyway. These costs should be coded 05-41.
Installation costs, on the other hand, are more ambiguous from a tax standpoint. Since the RCW and WACs related to the M&E Exemption do not specifically discuss loaned equipment, the University does not allow installation on a loaned piece of equipment to qualify for the M&E Exemption.
No for warranties, yes for maintenance agreements. The DOR issued a special notice that specifically calls out warranties as being taxable even if the property is exempt. If the warranty is included in the cost of the total sales price and can't be broken out separately, then it won't be subject to tax because it is considered part of the underlying price. If it is broken out separately, then it is taxable.
Maintenance agreements separate from warranties qualify for tax exemption.
You can still include the first year of a warranty into the total cost of an M&E qualifying piece of equipment, just use the equivalent non-M&E object code for the warranty portion of the purchase (e.g. use 06-91 for the warranty if the equipment is being purchased as 06-93).
Yes, Definition (15) of RCW 82.63.010 specifically includes software. It states: 'Qualified machinery and equipment' includes: Computers; software; data processing equipment...
Yes, please use object code 05-41 for the expenses.
No. The law does not extend the exemption to consumables.
Early in the University's adoption of the M&E Exemption, we learned that laptops and other portable computing equipment items would probably not qualify for the exemption under audit. This is due to the items being extremely portable as well as having the ability to be used for many different functions outside of research. To reduce the University's risk under audit, we simply don't allow these items to be purchased under the M&E Exemption.
Yes, please use object code 05-41 for the expenses.
Yes. Add costs to existing pieces of M&E qualifying equipment can qualify for the exemption, even if they are under $200.
Yes. Excise Tax Advisory 3127.2009 states, “a laboratory table…integral to an R&D operation,” as well as “a chair used in a laboratory workstation…integral to an R&D operation” both would qualify for the exemption. It specifically notes that furniture not used directly in R&D work is not considered integral and does not qualify.
Yes. The exemption applies to both "sales to" and "use by" a public research institution of machinery and equipment used primarily in a research and development operation."
No. If the welder is not going to be part of the final fabricated piece, it does not qualify. All M&E Exempt equipment must be used directly on research at least 50% of the time.