Tax Compliance FAQs

What is the definition of a "stipend payment"? 

A stipend payment from Ä¢¹½ÊÓƵÍø is a financial aid award for a currently enrolled Ä¢¹½ÊÓƵÍø student for which no work is required.

For which states does Ä¢¹½ÊÓƵÍø have sales tax exemption certificates? 

Currently Ä¢¹½ÊÓƵÍø has exemption certificates for state sales tax in Florida, New Mexico, New York, Tennessee and Texas. These may be used for supply purchases for Ä¢¹½ÊÓƵÍø business. 

Copies of the Certificates may be obtained from the Sales Tax Exemptions section.

What is the rate of reimbursement for mileage?

Beginning on January 1, 2026, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 72.5 cents per mile driven for business use (up 2.5 cents from 2025).
  • 20.5 cents per mile driven for medical purposes (down half a cent from 2025).
  • 20.5 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces (the deduction for moving expenses has been suspended for taxpayers other than active-duty members of the U.S. Armed Forces and now certain members of the intelligence community.)
  • 14 cents per mile driven in service of charitable organizations (unchanged from 2025).
Under what circumstances would Ä¢¹½ÊÓƵÍø pay sales tax?   

If Ä¢¹½ÊÓƵÍø is renting equipment and its employees operate the equipment, the University issues an exemption certificate and does not pay sales tax. If the University rents the equipment with an operator, it has to pay sales tax.
 
Does the Texas Hotel Occupancy Tax Exemption Certificate exempt Ä¢¹½ÊÓƵÍø travelers from all hotel taxes?

No. The exemption is valid only in the state of Texas and only for the state portion of the hotel tax. The traveler must still pay for the city, county and any other portions of the hotel occupancy tax.
 
Do Ä¢¹½ÊÓƵÍø travelers have to pay sales tax on meals when traveling on University business?
 
Yes.
 
Do Ä¢¹½ÊÓƵÍø travelers have to pay sales tax on purchases for business purposes in Texas?
 
No. Ä¢¹½ÊÓƵÍø business travelers may use Ä¢¹½ÊÓƵÍø’s tax exemption certificate when purchasing supplies for business. Examples include calculators, note pads, pens, and pencils.