ARCHIVED Bulletin: New Sales Tax Rate – Frequently Asked Questions (Posted April 24, 2009)

On April 1, 2009, the California sales tax rate increased from 8.25% to 9.25%. The new tax rate is automatically reflected on taxable requisitions and purchase orders created on or after April 1, 2009. The purpose of this bulletin is to address some questions we have received about requisitions / purchase orders and invoices processed before and after this change.

My requisition/purchase order was created before April 1, 2009 with taxable goods invoiced after April 1, 2009. What tax rate will Stanford pay?

Stanford must pay the new tax rate of 9.25% for goods invoiced after April 1, 2009 even though the purchase requisition / purchase order reflects the old tax rate of 8.25%. Accounts Payable will pay the invoice at the new tax rate based on the date of the invoice. There is no need for you to update the purchase order or invoice.

I committed to taxable products that were received and invoiced prior to April 1, 2009, but neglected to create the requisition/purchase order until after April 1, 2009. What tax rate will Stanford pay?

For invoices dated prior to April 1, 2009, Accounts Payable will pay the 8.25% tax rate that was in effect at the time the products were delivered and invoiced, even though the requisition / purchase order reflects the new 9.25% tax rate. There is no need for you to update the purchase order.

Questions?

• For additional questions about how the new tax rate impacts your purchase requisitions, purchase orders and invoices, please contact Gilbert Hoh, Tax Manager, Disbursements, at 650-723-0634.