State of Indiana Department of Revenue, in compliance with legislative changes in HEA 1811, requires all state colleges and universities in Indiana to submit for review by the state all contractual vendors of supplies and services.
The contracts are subject to the tax clearance process regardless of the dollar amount of the contract or purchase order. A clearance will not be issued if the supplier is delinquent in paying any sales tax liability or if the entity is not registered as a retail merchant.
If the supplier is delinquent, the college or university will be notified and is prohibited from continuing to purchase items from the supplier until the IDR issues a tax clearance. If the supplier is in compliance, the IDR will provide no notice.
If the supplier is not registered as a retail merchant they must register with the IDR to collect sales tax. If they are an out of state vendor with no nexus in Indiana, they must still register, but the $25.00 one-time registration fee will be waived. The supplier will be required to collect the sales tax on any other transactions that are subject to the sales tax.
When the supplier pays any delinquency or registers with the IDR, the IDR will issue a tax clearance to the supplier, and the college or university will be notified of the clearance.
The University is compelled to adhere to this requirement and plays no other role other than to report purchases to the IDR.
All supplier questions should be directed to Indiana Department of Revenue.
Ball State University Purchasing Services will provide a list of non-compliant suppliers in our attempt to comply with the state law and the directives of the Indiana Department of Revenue. As suppliers are cleared by the Department of Revenue this non-compliance supplier list will be updated and reposted on a monthly basis.
If you have any questions, please call or email the Director of Purchasing Services.