03.A.12 – Exemption from State of Texas Taxes for University Expenditures
Section: Fiscal Affairs
Area: General
1. PURPOSE
As state agencies, all universities of the University of Houston System are exempt from various State of Texas taxes in accordance with Section 151.309 and Section 156.102 , Texas Tax Code. This document describes these taxes and the procedures necessary to claim the exemption.
2. POLICY
2.1. A taxable item sold, leased, or rented to, or stored, used or consumed by any of the University of Houston System is exempt from state, local and Mutual Transit Authority sales and use taxes within the State of Texas.
2.2. Persons purchasing items for use by the university shall claim exemption from sales and use tax within the State of Texas in every possible case, using the Texas Sales and Use Tax Exemption Certification posted on the UHS Official Tax Documents web page (https://www.uh.edu/office-of-finance/tax-information/official-tax-documents).
2.3. Universities are exempt from the state portion of hotel occupancy taxes for lodging establishments in Texas, but are not exempt from local portion of hotel occupancy taxes for Texas lodging establishments.
2.4. Persons traveling on official university business inside Texas shall claim the exemption from the state portion of hotel occupancy tax, using the Texas Hotel Occupancy Exemption Certificate posted on the UHS Official Tax Documents web page (https://www.uh.edu/office-of-finance/tax-information/official-tax-documents).
2.5. Universities are not exempt from taxes imposed by another state.
2.6. If allowed by the university, tax paid on purchased goods or services for university use where the tax should have been exempt may be reimbursed from university funds, except for sponsored project and state-appropriated funds.
Issued: 05/07/1993
Last Reviewed/Revised: 11/11/2021
Responsible Office(s): Finance