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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

June 19, 2012
September 17, 2014
Federal Reporting


Part 10. Costing - Table of Contents

10.3.9. TAXES

A. Sales Tax

If the service center sells tangible personal property to external users, then sales tax is applicable. A tax must be collected on all cash sales involving tangible, personal property. The Texas State Comptroller defines “tangible personal property” as something that can be seen, weighed, measured, felt or touched, or that is perceptible to the senses in any other manner, and this includes computer programs. Generally, sales of office furniture, construction equipment, and typewriters are taxable. Some services are also taxable. To determine if sales taxes are applicable, contact Financial Accounting Services (FAS) at 512-471-3723 or by email at

B. Unrelated Business Income Tax (UBIT)

If goods or services are charged to external users at more than cost, the university may have a liability for UBIT. If you have any questions regarding UBIT, please contact the Office of Accounting and Financial Management at



Part 10. Costing - Table of Contents