What is small, white and taxable? Ping-pong balls.

This surprising fact was discovered over the summer when the Accounting and Business office reviewed various University business practices and made sure that sales tax was being collected on all necessary transactions. This included, among other things, the sale of ping-pong balls. Albeit an insignificant purchase, at 25 cents from a coin-operated machine, a transaction for tangible goods occurs. One that, according to Assistant Controller and Bursar Anna Nichols, sales tax applies to.

Nichols, along with Controller Joe Taylor and Assistant Controller Bryan Davis, reviewed the tax code and found themselves asking, “What should be taxed and what shouldn’t be taxed?” Taylor said.

“It’s our department’s responsibility to make sure sales tax is being remitted,” Nichols said, “we started communicating with [Student Life Director Mitch Karstens] to let other departments know that.”

The business office sent a message to all faculty and staff and compiled information to help various campus organizations evaluate their sales practices in an effort to ensure that these taxes are collected.

“Clubs had never really done any kind of tax for fundraisers before,” Karstens said. While tax is not required to be collected for all fundraisers, like ones that raise money via food, ticket or advertising sales, a clear set of standards is now available for organizations using various methods to raise money.

According to Dana Nunn, director of media relations, some taxable items are more obvious than others, such as the sales at prospective student-run lounge The Point.

“When The Point opens, obviously they’re going to be charging sales tax.” Nunn said, adding that this wouldn’t be much different from the ping-pong balls in the rec room.

The Accounting and Business office has information available through Student Life for student clubs and organizations interested in hosting fundraisers.
“Everyone’s not a tax expert, so it’s our job to make sure they know,” Nichols said.