I. Purpose
The purpose of this policy is to establish consistent procedures for the reimbursement of sales tax and the proper use of the Garnet A. Wilson Public Library tax-exempt status. This policy ensures compliance with Ohio law and the guidance issued by the Ohio Auditor of State in Bulletin 2025-013.
II. Requirements and Restrictions
Authorized Purpose: All expenditures must serve a proper public purpose. Purchases for the Library made with employees’ personal funds must be authorized in writing by the Fiscal Officer or Director prior to the purchase. Authorization exceptions may be made after the purchase for emergency situations.
Tax-Exempt Certificate Access: Only employees authorized by the Fiscal Officer may use or access the Library’s tax-exempt certificate. The tax-exempt certificate shall be used only for purchases made directly by and charged to the Garnet A. Wilson Public Library.
Prohibition on Use of Tax-Exempt Certificate for Personal Purchases: Employees are prohibited from using or presenting the Library’s tax-exempt certificate when making purchases with a personal credit card or checking account, even when the purchase is for Library business.
Sales Tax Reimbursement: Employees who make authorized purchases using personal funds must pay the sales tax at the point of sale. The Library may reimburse the employee for the full purchase amount, including sales tax, if the expenditure is approved and properly documented. Reimbursement requests must include an itemized receipt showing payment, including any sales tax charged.
Direct Library Purchases (Tax-Exempt Transactions): Purchases made directly by the Library (e.g., using the Library’s credit card, purchase order, or account) are not subject to sales tax. Invoices and receipts must clearly indicate that the sale was made to the “Garnet A. Wilson Public Library.”
Recovery of Sales Tax Paid in Error: If sales tax is charged on a purchase made directly by the Library, the Fiscal Officer shall take steps to recover the amount from the vendor or through the Ohio Department of Taxation’s “Sales/Use Tax Application for Refund (STAR)” process.
III. Reimbursement Threshold
As a best practice to minimize unnecessary sales tax payments, the Library establishes a $250 maximum threshold for reimbursable purchases made using an employee’s personal credit card or checking account. Purchases exceeding $250 (including sales tax) must be made using the Library’s credit card, purchase order, or account to utilize the tax exemption. Exceptions may be approved by the Fiscal Officer in limited, documented circumstances (e.g., emergencies).
IV. Documentation and Audit Compliance
Reimbursement requests must include:
Original itemized receipts or invoices
Proof of payment (credit card slip, bank statement, etc.)
Description of the public purpose for the expenditure
The Fiscal Officer shall maintain records of reimbursements and purchases in accordance with Library retention schedules and audit requirements.
Failure to comply with this policy may result in denial of reimbursement and/or disciplinary action.
[Approved 11.2025]