721.1 - Procedure for Processing NC Sales Taxes on Admission Charges

Title

The University of North Carolina at Chapel Hill Procedure for Processing NC Sales Taxes on Admission Charges

Introduction

Purpose

The sales tax for admission charges is required by N.C. General Statutes.

Scope

All campus units that charge admissions for events at the University of North Carolina at Chapel Hill.

Procedure

Sales taxes on admission charges to entertainment events are collected by a campus unit and remitted to the NC Department of Revenue (NCDOR) by University Accounting Services. Sales taxes collected are due to NCDOR as follows:

1. On a quarterly basis and by the last day of the month following the end of the quarter if the amount collected is less than $100.
2. On a monthly basis and by the 20th of the month following the month of collection if the amount collected is greater than or equal to $100 and less than $20,000.
3. On a monthly basis and by the 20th of the month following the month of collection if the amount collected is less than $20,000. A prepayment is also required. The prepayment must equal at least 65% of any of the following:
   • The amount of tax due for the current month,
   • The amount of tax due for the same month in the preceding year, or
   • The average monthly amount of tax due in the preceding calendar year. The average monthly amount of tax due in the preceding calendar year.

Forms and Instructions

The procedural steps to register, report and remit sales taxes for admission charges are as follows:

Registration

1. The campus unit completes Finance Form 721.1.1f - Registration Application for Sales Taxes and provides the form to the Cash Manager, Accounting Services, to request an NCDOR Sales Tax Account ID.
2. Accounting Services, on behalf of the campus unit, completes and submits the online registration application, and NCDOR Form NC-BR - Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge.
3. NCDOR processes the Registration Application and provides the Sales Tax Account ID to Accounting Services.
4. Accounting Services provides the Sales Tax Account ID to the campus unit.

Reporting

1. After the end of a calendar month (or quarter if applicable), the campus unit completes and submits the online NCDOR Form E-500 - Sales and Use Tax Return to calculate sales taxes, currently at 7.5%. The completed online form will include the following:
   • Department name, address, and Sales Tax Account ID
   • Line 1 - Gross Receipts Total (for admission charges for entertainment events)
   • Line 4 - General State Rate (total taxable receipts at current 4.75% rate)
   • Line 10 - County Rate (total receipts at current 2.25% rate)
   • Line 11 - County Transit Rate (total receipts at current 0.50% rate)
   • Line 13 - Total State and County Tax
   • Line 18 - Less Prepayment for This Period (if applicable)
   • Line 19 - Prepayment for Next Period (if applicable)
   • Line 21 - Total Due

Remittance

1. The campus unit completes Finance Form 720.1.1f - State Treasurer Payment Request Form to authorize payment of sales taxes. The completed Check Request will include the following:
   • Payee: NCDOR
   • Account: 211940 or other appropriate chartfield string.
   • Amount: Dollar Amount of Sales Tax to Remit
   • Description: Electronic Payment to remit sales taxes on admission charges for entertainment events for NCDOR Sales Tax Account ID ######### for the month ended MM/DD/YYYY (or the quarter ended MM/DD/YYYY if applicable).
   • Department Contact: Name of contact person for campus unit.
2. The campus unit emails a PDF copy of the E-500 Form and a copy of Finance Form 720.1.1f - State Treasurer Payment Request Form to cash_management@unc.edu by the 12th of the following month for monthly submissions and by the 20th of the following month for quarterly submissions.
3. Accounting Services remits the funds to NCDOR using the State Treasurer Core Banking system.
   • Finance Form 721.1.1f - Registration Application for Sales Taxes

Definitions

Remit- to send (money) to a person or place especially in payment of a demand, account, or draft (Webster's Online Dictionary).

Related Requirements

External Regulations and Consequences

• NCDOR Form NC-BR - Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge
• NCDOR Form E-500 - Sales and Use Tax Return

University Policies, Standards, and Procedures

• Finance Policy 721 - University of North Carolina at Chapel Hill Policy on NC Sales Tax on Admission Charges
• Finance Form 721.1.1f - Registration Application for Sales Taxes
• Finance Form 720.1.1f - State Treasurer Payment Request Form

Contact Information

History

Revised:

• June 8, 2023: Added title, scope of applicability and definition.
• January 11, 2019: Updated State Treasurer Payment Request Form to 720.1.1f State Treasurer Payment Request Form to adhere to UNC Finance standard policy nomenclature.
• September 24, 2015: Updated remittance process and added link to state treasurer form.
• November 26, 2013