Organizational Tax
The department of Managerial Accounting Services seeks, among other things, to monitor and comply with the tax obligations of all jurisdictions that activities of the University generate. Organizational taxes encompass those imposed by Federal, State, County, and Local levels of government. While Purdue University as an educational institution is exempt from many of such taxes, it is subject to others. For example, Purdue is not always exempt from collecting state sales tax, and may be required to remit taxes from sales of items to the general public; or, must collect specialized taxes, such as Innkeeper’s Tax, under certain circumstances. Purdue also may be required to pay sales tax on certain purchases, such as on purchases made in some other states. As well, Purdue is not exempt from all income taxes, namely on revenue generated from activities that are outside the scope of Purdue’s mission and exempt purpose.