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With the growing number of off-campus facilities and the increased
use of cellular telephones to conduct University business, UCLA is
seeing an increasing number of billing errors on our phone and
utility bills related to taxes for which the University is exempt.
In particular, we are finding that UCLA telephone and utility
accounts are being improperly charged for the following taxes:
The
following information is provided to assist campus departments
correct the tax status of University telephone and utility accounts
on a prospective basis, as well as obtain a refund of taxes
previously paid in error.
1)
Federal
Communication Excise Tax (FCET)
In
accordance with Internal Revenue Code Section 4253(i) and (j),
UCLA is exempt from the Federal Communications Excise Tax (FCET)
imposed by Internal Revenue Code Section 4251.
If you determine that FCET is being charged on University
telephone accounts, please do the following:
Send
the telephone service provider a letter requesting an exemption from FCET and a
refund of FCET paid for the preceding 3-year period.
A
sample
letter has been drafted for your convenience.
Please indicate the information referenced in the brackets <
> as it relates to your department's specific situation and
the telephone account(s) for which you are seeking exemption.
A
sample
letter is also provided when both FCET and
LACUT are being charged incorrectly.
Include with the letter the following three items:
1.
A
copy of a recent bill indicating improper FCET
charges.
2. A
copy of a completed
Certificate
of Exemption from Federal Excise
Tax On Charges For
Communication Services.
3. A
copy of the University’s Internal
Revenue Code Section 501(c) (3)
Determination Letter.
Please
note that only telephone accounts established in the Name of the
University are eligible for exemption from FCET. Accounts
established in the name of University employees or other
individuals, even though such telephones may be used for University
business purposes, are not eligible for FCET exemption.
Please consult CTS if you need assistance establishing a University
telephone account.
If
you are unable to obtain an exemption and refund after following the
above procedures, please contact Sandra Sabeti in Tax Services at ssabeti@finance.ucla.edu
for assistance.
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2)
Los Angeles City Utility Tax
In
accordance with the California Constitution and Article
1.1, Section 21.1.2 of the Los Angeles Municipal Code, the
University of California is exempt from Los Angeles City Telephone,
Electricity, and Gas Users Tax, which is also known as Los Angeles
City Utility Tax, (LACUT). If you determine that
University telephone or utility accounts are being charged LACUT,
please do the following:
Send
the telephone or utility service provider a letter
requesting an exemption from LACUT
and a refund of LACUT paid for the preceding 1-year period.
A
sample
letter has been drafted for your convenience.
Please indicate the information referenced in the brackets <
> as it relates to your department's specific situation and
the telephone/utility account(s) for which you are seeking exemption.
For telephone accounts, a
sample
letter is provided when both FCET and LACUT are being charged incorrectly.
Include
with the letter the following three items:
1. A
copy of a recent billing indicating the improper
charges.
2. A copy of
UCLA's determination letter from the City of Los Angeles,
Office of
Finance.
3. A
copy of Article
1.1, Section 21.1.2 of the LAMC.
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If
University accounts have not been exempted; or credits and/or refunds
have not been received within two billing cycles, follow-up
with your telephone service provider to make sure the
University's exemption and refund will be received shortly.
-
In
some cases, a telephone or utility service provider may require
a letter from the City of Los Angeles, Office of Finance
prior
to exempting University accounts or issuing refunds for LACUT
amounts previously paid. If this is the case, please send a
follow-up letter directly to the City of Los Angeles, Office of
Finance requesting exemption from LACUT and a refund of
amounts paid in the previous 1-year-period. A
sample letter has
been drafted for your convenience.
Please indicate the information referenced in the
brackets < > as it relates to your
department's specific situation and the telephone account(s) for
which you are seeking exemption.
-
Include
with the letter a copy of a recent billing
indicating the improper charges.
-
Also
include a copy of the earlier letter sent to
the telephone or utility service provider.
Upon
receipt of the letter, the City of Los Angeles, Office of Finance will inform the
telephone or utility service provider in writing that the
University's accounts are exempt from LACUT and to refund such
amounts paid within 1-year of the date of initial request for
exemption and refund. A correspondence copy of such letter will
generally be sent to the University contact who requested the
LACUT exemption and refund.
Please
note that only accounts established in the Name of the University
are eligible for exemption from LACUT. Accounts established in
the name of University employees or other individuals (e.g. cellular
accounts), even though such telephones may be used for University
business purposes, are not eligible for LACUT exemption.
Please consult CTS or
Facilities respectively, if you need
assistance establishing a University telephone or utility account.
If
you are unable to obtain an exemption or refund after following the
above procedures, please contact Sandra Sabeti in Tax Services at ssabeti@finance.ucla.edu
for assistance.
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3)
Utility Tax -
cities other than Los Angeles
Please contact Sandra Sabeti in Tax
Services at ssabeti@finance.ucla.edu
for information.
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