Sales Tax Exemption Information

Sales Tax Exemption Information

Bloomsburg University of Pennsylvania is exempt from all Excise Taxes. This also applies to Pennsylvania Sales Tax, however, any contractor/supplier doing business with the University remains liable for the payment of Sales and Use Tax on all materials and fixtures he/she purchases or uses for the purpose of fulfilling his/her contract, even though the work is being performed for a governmental instrumentality.

Bloomsburg University of PA is part of the State System of Higher Education and is an instrumentality of the Commonwealth of Pennsylvania. The sale at retail to a construction contractor of building machinery and equipment that are transferred to the State System of Higher Education may possibly be excluded from some or all sales tax.

Forms and directions on obtaining exclusions from sales taxes may be obtained from any office of the Pennsylvania Department of Revenue.

The University’s sales tax exemption number may not be used by a construction contractor to purchase materials for a school contract. A construction contractor, however, is exempt from sales tax on the purchase of certain “building machinery and equipment” that will be transferred to a university in conjunction with a construction contract. Section 201 (pp) of the Tax Reform Code, 82 P.S. 7201 (pp), provides a listing of the exempt “building machinery and equipment.” Items that become part of a real estate structure and that do not meet the definition of building machinery and equipment are not exempt from tax even if the items are for a school contract.

Since a vendor of tangible personal property is required to collect sales tax from a customer unless the customer provides a valid exemption certificate, the contractor must provide the supplier with an exemption certificate to obtain the exemption for those items that meet the definition of building machinery and equipment. To claim this exemption, the construction contractor should complete the exemption certificate by including on line 7 the statement below:

Property or services qualify as building machinery and equipment and will be transferred pursuant to a construction contract with Bloomsburg University of Pennsylvania.

If a contractor’s purchase includes both exempt building machinery and equipment and non-exempt property, the vendor and the contractor must maintain records sufficient to permit the Department of Revenue to ascertain whether the items purchased were in fact exempt building machinery and equipment.

Construction - Exempt Building Machinery and Equipment Information

Act 45 Summary
Act 45 Purchases for Exempt Entities
PA Dept of Revenue Sales and Use Tax