Principal Investigator and Department should:

  • Ensure that all criteria for the exemption are met.  if an exemption is taken on an item that is later deemed by the Washington State Department of revenue to not qualify, the department will ultimately be required to pay the tax along with penalties and fines.
  • Submit the purchase request using the correct object codes.  The exemption will only be taken on items with:
    • Proper M&E object codes
    • A sufficient M&E statement detailing the type of research to be performed and the desired outcome.  The location of this comment varies by method of purchase.  See below for specific locations:
      • Ariba - In the item detail screen, it will ask:
        • Is this item Equipment? - Check the yes button.
        • Is this M&E item? - Check the yes button and a box will appear for the M&E statement.
        • The Non-catalog option in Ariba can be used for M&E purchases.
      • Blanket Purchase Order (BPO) - In the item detail screen, it will ask:
        • Is this item Equipment? - Check the yes button.
        • Is this M&E item? - Check the yes button and a box will appear for the M&E statement.
      • Non-PO Invoice - M&E purchases cannot be made using the Non-PO Invoice option in Ariba.  M&E purchases require prior approval from EIO; this option does not allow for prior approval.
      • eReimbursement - M&E purchases cannot be made using the eReimbursement option in Ariba.  M&E purchases require prior approval from EIO; this option does not allow for prior approval.
      • Procurement Card - M&E purchases cannot be made on the Procurement Card.  M&E purchases require prior approval from EIO; this option does not allow for prior approval.

Note: If during the useful life of the asset, it is determined it will not be used 50% or more on qualifying research, the department will be required to pay the tax due.

Equipment Inventory should:

  • Review and approve requisitions and M&E statement in the comments section of Ariba purchases.
  • Respond to vendor questions regarding allowable exceptions.
  • Assist department in applying the M&E Exemption.

Procurement Services should:

  • Place orders.
  • Work with vendor to ensure tax is not included on invoices with purchases qualifying for the M&E Exemption.
  • Review the M&E Exemption when paying the invoice.
  • Deduct the tax from payment to vendor where appropriate.

Tax Office should:

  • Assist Equipment Inventory in applying the M&E Exemption.
  • Research unique purchases over $100,000.