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Purchases: When Sales or Use Tax May Apply

As a public university and a political subdivision of the state of Ohio, ºÚÁÏÉçÇø can be exempt from sales tax when purchasing goods or services for its official tax-exempt business purposes.

1. Tax-Exempt Purchases

• The University holds exemption certificates in Ohio and several other states. A tax-exempt certificate (also called a sales tax exemption certificate) is used by qualified organizations to inform the seller that the purchase qualifies for sales tax exemption.
• Exemption applies only to institutional business purchases (not for personal use by faculty or staff).
• Purchases must be made using University funds (e.g., P-card, purchase order).

2. Out-of-State Purchases

• Miami holds exemption certificates in a number of states where we do business frequently. Please visit Sales Tax Exemptions Page. If the University does not have an exemption certificate on file for a particular state, and the vendor is required to collect that state’s sales tax, the University may be obligated to pay sales tax at the time of purchase. In such cases, the tax paid may be considered part of the total cost of the goods or services.
• Take into consideration that the shipping destination, not the vendor’s location, may determine the applicable sales tax jurisdiction. If goods are shipped into Ohio, Ohio tax rules may apply.
• When the University makes a purchase from an out-of-state vendor, and the goods are shipped to an Ohio address, the transaction may still qualify for Ohio sales and use tax exemption, even though the seller is located outside Ohio.
• Out-of-state vendors with an obligation to collect Ohio sales tax are generally required to accept valid Ohio exemption certificates for qualifying transactions.
• If a purchase is made from an out-of-state vendor and no sales tax is charged, the University may be responsible for self-assessing and remitting use tax.

3. Non-Exempt Purchases

Sales tax may be incurred when:

• Purchases are made for non-educational , non-exempt purposes
• The purchase is made in a physical location outside Ohio in a state where University does not have an exemption.
• Improper form of payment is used (e.g. personal credit card)

4. Personal Purchases

• University tax exemptions cannot be used for personal purchases by employees.

In Ohio, a vendor’s license is generally required for both physical and online sales, though the type of license may differ depending on how and where the sales are conducted. This requirement applies to University departments or programs that conduct regular or recurring sales of tangible goods or taxable services to the public. 

Departments planning to sell merchandise, host conferences with taxable items, or run other revenue-generating activities that involve retail sales may need to obtain vendor’s license. 

Department representatives can coordinate with the Office of Tax and Compliance to determine if the vendor’s license is required. The Office of Tax Compliance will assist to ensure proper sales tax collection, reporting, and remittance. 

Here is the useful link to Ohio Department of Taxation-Vendor’s License Information:

Physical Location Sale

• Seller must obtain a regular county vendor’s license if you are making taxable retail sales from a fixed location in Ohio (such as a gift shop, campus market, or in-person event).
• The license must be issued in the county where the sales are taking place.
• One license is required per fixed place of business (e.g., one per permanent campus shop).
• Please visit the Ohio Department of Taxation Web page for more information about the vendor’s license registration process :

Online or Remote Sales

• If your online sales platform serves only in-state Ohio customers and you operate from within Ohio, a regular vendor’s license may still be appropriate.

When Miami departments sell goods or services to individuals or external organizations, they may be required to collect and remit sales tax unless a product or service is not a subject to sales tax or purchaser presents a valid tax exemption certificate.

 Common examples of taxable sale include:

• Sales of tangible goods (e.g., books, merchandise, clothing, computers, class supply, lab kits, etc.)
• Prewritten (canned) software, digital books, magazines
• Leasing of tangible personal property
• Dine-in food, meaning food consumed at the establishment where it is purchased. This is food sold to non-ºÚÁÏÉçÇøs. For more details visit the Ohio Department of Taxation page:
• Catering: rental of chairs, tables, stemware, silverware, tablecloths, etc.
• Admission fees to public events or performances
• Equipment rental or short-term facility rentals with equipment or services
• Conference registration fees that include taxable items (e.g., meals, merchandise)

Important notes:

• Responsibly of the proof of sale activities resides with the selling department. 
• Business area making the sale is responsible for retaining all related documentation including invoices, contracts, bills of lading, exemption certificates, receipts, and all other relevant documentation.
• Sales tax requirements vary by jurisdiction. Currently, Miami is registered to collect and report sales tax only in the state of Ohio.

Departments responsible for selling taxable goods or services must:

• Maintain detailed records of taxable and nontaxable sales
• Collaborate with the Office of Tax and Compliance to ensure proper tax collection and remittance
• Submit monthly sales report that includes the following information:
  • Name of Business Unit
  • Accounting Line (fund, cost center, campus)
  • Gross Sales
  • Tax Exempt and Non-Taxed Exempt Sales
  • Taxable Sales
  • Expected Tax (calculated using taxable sale and applicable tax rate)
  • Tax Collected

Questions or New Activities?

If your department is planning to begin selling goods or services or if you're unsure whether a transaction qualifies for exemption, please contact the Office of Tax and Compliance for review. Early involvement helps ensure compliance with tax laws and may reduce audit risk.

In Ohio, the  is the primary agency responsible for regulating sales and use tax. 

Their responsibilities related to sales tax:

• Rulemaking: The Ohio Revised Code grants rule-making authority to the ODT to adopt, amend, and rescind sales tax rules. 
• Administration: The ODT administers the sales and use tax on various transactions, including retail sales, leases, and rentals of personal property, as well as the sale of certain services.
• Rate Setting: While the state has a base sales tax rate of 5.75%, local jurisdictions (counties and transit authorities) can levy additional sales and use taxes, potentially increasing the overall rate up to 8% in certain areas. The ODT provides information about these rates and changes.
• Compliance Assistance: The department helps businesses understand their responsibilities regarding registering for, collecting, reporting, and paying sales, and use tax.
• Electronic Filing and Payment: They offer online options for filing returns and making payments.

ºÚÁÏÉçÇø acts as an agent of the state by collecting sales tax from purchasers and remitting it to the Ohio Department of Taxation. The collected funds belong to the state and are vital for funding state and local government operations.

While the statewide sales tax rate in Ohio is 5.75%, individual counties and regional authorities can add their own local sales taxes, resulting in a combined rate that varies depending on the specific location within Ohio. The local sales tax can be as high as 2.25% in certain areas.

Therefore, to determine the exact sales tax rate for a specific location in Ohio, a seller would need to factor in both the state rate and any applicable local taxes levied by the county or regional authority.

The ODT phone number for sales and use tax related questions: 888-405-4039.

Tangible personal property includes items that can be seen, weighed, measured, or touched  such as office supplies, furniture, electronics, books, and merchandise.

Yes. Each state has its own sales and use tax laws, including what is taxable and which exemption certificates are accepted. The Office of Tax and Compliance can help determine state-specific requirements for purchases.

Yes. If a department is engaging in sales of taxable goods or services, the University must obtain an Ohio Vendor’s License (or other applicable license in another state) and comply with tax collection and filing requirements. A  allows Ohioans and Ohio-based businesses to sell products or provide services.

Departments must maintain detailed records of all sales and submit monthly sales reports to the Office of Tax and Compliance. The report must include: 

• Gross sales 
• Exempt sales
• Taxable sales
• Tax collected

During the Ohio Sales Tax Holiday, many purchases of tangible personal property priced at $500 (for 2025) or less are exempt from sales tax. Departments making sales during this time must properly track and report tax-exempt transactions.

Yes. As a public institution and a subdivision of the State of Ohio, ºÚÁÏÉçÇø is generally exempt from paying sales tax on purchases made for the official University business. However, this exemption does not apply to purchases for personal use or when appropriate exemption documentation is not provided to the vendor.

The University must provide a valid Ohio Sales and Use Tax Blanket Exemption Certificate to vendors at the time of purchase. ºÚÁÏÉçÇø is also exempt in a number of other states, for the list of states, please visit our Sales Tax Exemption Page for more details.

If sales tax is mistakenly charged, departments should request a refund from the vendor. If the vendor is unable to issue a refund, contact the Office of Tax and Compliance for further guidance.

Yes, but it is the responsibility of the cardholder to inform the vendor of the University’s tax-exempt status and to provide the exemption certificate prior to completing the purchase.

Departments planning to engage in sales must consult the Office of Tax and Compliance to ensure proper licensing, tax collection procedures, and reporting are in place.

Yes. When the University sells tangible personal property or taxable services, it is generally required to collect and remit Ohio sales tax unless a valid exemption applies.

No. Currently, ºÚÁÏÉçÇø can only sell taxable goods and services within the State of Ohio. Selling to customers in other states may create tax nexus and require the University to register, collect, and remit sales tax in those states. These activities are not currently structured to support.

Departments must not advertise, solicit, or fulfill sales across state lines without prior coordination with the Office of Tax and Compliance.

• Exception 1: This restriction does not apply to for-credit online courses offered by the University. Tuition and fees for these programs are governed by different tax rules and are generally not subject to sales tax.
• Exception 2: The Miami Online Program has entered into agreement with Avalara to assist with their online sale activities across a number of various jurisdiction.

Examples include clothing, books, school supplies, electronics, food and beverages (unless otherwise exempt), and other tangible items. Certain services may also be taxable depending on state law.

Exception: Food and beverages sold to ºÚÁÏÉçÇø in University cafeterias are not subject to sales tax.

The taxability of online courses and digital products sold by universities can be complex and depends on the specific nature of the offering and the state's laws. 

• Live vs. Pre-recorded: Live, instructor-led online courses or educational services are often treated differently from pre-recorded or automated courses. Live interaction may classify it as a service, potentially exempt from sales tax in some states.
• Digital Products: Many states now tax digital products, and a pre-recorded online course or webinar may fall under this category and be subject to sales tax.
• Course Materials: If the online course includes tangible or downloadable materials (like textbooks or supplemental resources), those items may be subject to sales tax, even if the course itself is not.

Most food for human consumption is exempt from sales tax, unless it's consumed on the premises where sold.

• Food consumed off-premises (e.g. take-out, delivery, drive-thru) is tax-exempt under Ohio law and the state constitution, so long as it meets the definition of food established by the .
• Food consumed on the premises (e.g. dine-in at restaurants, cafés, or food trucks that provide seating) is taxable, including food prepared and eaten there.

Under Ohio Revised Code § 5739.01, food is defined as any substance sold in liquid, solid, frozen, dried, dehydrated, or concentrated form for human ingestion or chewing and consumed for taste or nutrition. The following are excluded from that definition and are always taxable:

• Soft drinks (sweetened beverages, soda, energy drinks, sports drinks), regardless of where consumed
• Alcoholic beverages
• Dietary supplements (vitamins, protein powders, etc.)

Examples of items that are generally exempt (when consumed off-premises) include:

• Fruits, vegetables, meat, dairy
• Bread and bakery items meant for home consumption
• Plain coffee and tea, unsweetened bottled water, and milk (unless sweetened)

Items sold to exempt entities (e.g., other tax-exempt organizations) with a valid exemption certificate, or sales during a designated Sales Tax Holiday, may be exempt. Additionally, sales for resale with a valid resale certificate are exempt.

Departments planning to engage in sales must consult the Office of Tax and Compliance to ensure proper licensing, tax collection procedures, and reporting are in place.

An exemption certificate is a document that allows a buyer to make tax-exempt purchases that would otherwise be taxable. The certificate must be provided to the seller at the time of purchase.

The University’s Ohio Blanket Exemption Certificate is available through the Office of Tax and Compliance.  Please visit our Tax Exemption Page.

No. The University’s exemption applies only to official University business purchases. Personal purchases are not exempt and must include applicable sales tax.