Frequently Asked Questions

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.

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.

If it is deemed that an equipment purchase would qualify for the M&E exemption, a statement detailing the type of research to be performed and the desired outcome, is required. Please see examples of acceptable and unacceptable statements on our M&E Statement Examples web page.

A pre-populated M&E Certificate is available on Equipment Inventory's Forms webpage. As long as the order has gone through one of the UWs purchasing systems as M&E (so that the appropriate audit trail is collected), it is okay to complete the pre-populated form and send to the vendor. We recommend you reference the PO number next to the vendor name.

Please see M&E Object Codes section.

The tag should always be affixed to the central processing unit (CPU) where it can easily be seen. We recommend placing the tag on the front of the CPU because it is the most visible location and makes the inventory process easier for the departmental inventory contact.

Include the central processing unit (CPU), operating system, monitor, keyboard, mouse, desk printer (if purchased at the same time), external modem, internal and external drives, freight, video cards, RAM, and sales tax in the total cost.

Physical inventories of University-owned equipment must be completed by University departments every two years and are distributed during January. The listings are sent to the departmental inventory contacts, as listed with EIO (Equipment Inventory Office). Physical inventories of Federal-owned and Agency-owned equipment must be taken annually. Audits of the physical inventories taken by departments are performed annually by various state, federal, private, and internal auditors. Additional inventory information can be found at Physical Inventories or by contacting EIO at eio@uw.edu or (206) 543-4663

EIO will be conducting Brown Bag lunch sessions for the 2016 Physical Inventory cycle. In addition to that, we have how-to information available on our website, and here in the FAQs.

Please refer to the University of Washington's records retention policies for information (found here).

When this occurs, transfer all information from your working copy (or copies) to the original inventory.

Yes. A physical inventory of Agency and Federal equipment is required yearly by federal regulations. Physical inventories of University equipment are required every two years ('biennially') by state regulation.

Government accounting practices include accounting for the depreciation of an asset. However, the 'Total Cost' on all assets remains at the purchase price for the entire time that the item is in use by the University. We are accountable to the tax-paying public for all assets and cannot drop them off the system when they have fully depreciated. Assets are only removed from the inventory system when they are disposed through an approved disposal method.

You need to verify equipment used at home or out of area with a written document, such as email or a letter. When the person using the asset sends you a written confirmation, you can mark the asset as 'Located'. Keep the written verification in your inventory files for audit purposes.

Call Equipment Inventory at 543-4663. We can look the item up for you. This will provide us with its history and help us figure out how to move forward. If the item is accidentally in your area and was not a purchase from Surplus, we can contact the department of ownership to arrange for its return.

Start by visiting Surplus Property's Purchasing and Sales website. Here you will find information on public auction dates, store hours, contact information, and parking. There's also an option to sign up for their mailing list, if interested.

Please see Standard Tag Locations for guidance.

No.