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AP Process

Does the UW have a tax exemption certificate that exempts us from paying property taxes?

Under RCW 84.36.050, the UW, which includes UWMC, is exempt from property tax on real or personal property owned or used by the University in this state if used for educational purposes. Therefore, we do not have or need an exemption certificate.

However, if we are leasing, there may be a different set of rules, which depends on the type of lease. Please refer to the lease agreement between the University and supplier.

*Note: Harborview Medical Center (HMC) is not considered a UW entity for these purposes.

Food Approval

If I purchase an item classified as food but we use it for another purpose, is it taxable?

If you purchase an item normally classified as food but use it for another purpose, it is still treated as food and therefore, not taxable.

Example 1: A department purchases vinegar but uses it for cleaning. The vinegar is not taxable. 

Example 2: A department purchases pumpkins in fall and has students decorate them for display in the office. The pumpkins are still considered food and are not taxable.

What are examples of items which do not apply to this rule? Items sold for medical or hygiene purposes, alcohol, tobacco, candy, bottled water, soft drinks, and prepared foods. 

See: http://app.leg.wa.gov/wac/default.aspx?cite=458-20-244, #2b.

 

Tax

Is the University of Washington tax exempt?

The University is not a tax exempt institution. The University of Washington must pay sales tax on most merchandise purchased for operations of the University.

For more tax information please see the Tax Office webpage. Under "Departments" please review the various areas, including:

WA State Sales Tax
Exemption for Other States
Federal Taxes
International Taxes
Miscellaneous Taxes
I have more questions about Tax and the University of Washington. Where can I find more information?

Please visit the Tax Office website. There are several additional FAQs that may help you.

Does the UW have a tax exemption certificate that exempts us from paying property taxes?

Under RCW 84.36.050, the UW, which includes UWMC, is exempt from property tax on real or personal property owned or used by the University in this state if used for educational purposes. Therefore, we do not have or need an exemption certificate.

However, if we are leasing, there may be a different set of rules, which depends on the type of lease. Please refer to the lease agreement between the University and supplier.

*Note: Harborview Medical Center (HMC) is not considered a UW entity for these purposes.

Are maintenance agreements taxable on an M&E tax exempt order?

Yes, only the equipment will be tax exempt. Maintenance service agreements are still taxable. See taxability grid on the Tax Office webpage at https://finance.uw.edu/tax/netid/taxability. 

If I purchase an item classified as food but we use it for another purpose, is it taxable?

If you purchase an item normally classified as food but use it for another purpose, it is still treated as food and therefore, not taxable.

Example 1: A department purchases vinegar but uses it for cleaning. The vinegar is not taxable. 

Example 2: A department purchases pumpkins in fall and has students decorate them for display in the office. The pumpkins are still considered food and are not taxable.

What are examples of items which do not apply to this rule? Items sold for medical or hygiene purposes, alcohol, tobacco, candy, bottled water, soft drinks, and prepared foods. 

See: http://app.leg.wa.gov/wac/default.aspx?cite=458-20-244, #2b.

 

Is gene synthesis taxable?

Gene synthesis or analysis service usually involves primarily human effort and therefore would be considered a professional service not a retail service subject to WA State sales/use tax. Taxability Grid.