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Now is a great time to review how to host events featuring food and beverages. At CU ¶¶Òõ´«Ã½ÔÚÏß, we value fostering community through shared meals and refreshments, all while upholding safety, legality and fiscal accountability. This guide addresses a key aspect of event planning: purchasing food and beverages for official university functions.Ìý

Tax Exemptions for Official University Purchases

One common question in event planning is how to manage sales tax on food and beverages bought for official CU ¶¶Òõ´«Ã½ÔÚÏß functions. Good news: As a constitutionally recognized state institution of higher education, CU ¶¶Òõ´«Ã½ÔÚÏß qualifies for Colorado's governmental purchase exemption, which applies to all sales—including prepared food, non-alcoholic drinks, and even alcohol—when purchased in our official governmental capacity.

According to a , sales to state institutions like ours are exempt from state sales tax under C.R.S. § 39-26-704(1). This exception covers the full spectrum of event essentials, from catered buffets to boxed lunches, if the purchase meets these four key conditions:

1. Purchaser is a Governmental Entity: CU ¶¶Òõ´«Ã½ÔÚÏß, as a state institution, qualifies.
2. Acting in Official Capacity: The purchase must support allowable university business, such donor reception, not personal use. If you are not sure whether an expense supports allowable university business, please contact us for guidance.
3. Proper Documentation: Use a university purchase order or, procurement card (p-card or travel card). For additional guidance on documentation needs, please consult our information session.
4. Paid with University Funds: To fully secure the exemption and maintain clear compliance, the payment must be made directly from official university accounts—such as SpeedType 20/29 for auxiliaries or fund 34 with Gift Purpose Code "Y" for no-charge events.
   1. Using personal funds (cash, personal credit card) does not meet the exemption criteria, as it will result in the tax being applied, even if you present exemption documentation from the University – it is critical that a university payment method is utilized to secure sales tax exemption on a purchase. Opting for university payment methods from the start helps avoid any unexpected costs and keeps our processes straightforward and audit ready.

Pro Tip: Always provide vendors with your university tax-exempt ID and retain receipts showing the exemption was applied. This ensures compliance and is helpful in the event of an audit. Taxes are not reimbursable if you forget to claim the exemption upfront. Vendors must collect them otherwise.

By claiming this exemption correctly, you save university resources. Remember, this applies to direct purchases from licensed retailers or caterers, not retail sales where you are just a customer at a restaurant without official documentation.

Best Practices for Purchasing Food & Beverages

Food and beverages can elevate any event, from casual coffee hours to formal banquets. CU ¶¶Òõ´«Ã½ÔÚÏß's procurement policies emphasize sustainability, inclusivity, and value. Here is how to source them compliantly:

• Event Classification and Approval: Start early. Consult the and submit the any required forms via DocuSign at least 15 days in advance. Include details on menu, dietary accommodations (e.g., vegan, gluten-free), and sustainability goals (aim for local, low-waste options).
• Approved Vendors: Use theÌý or the Buy Local lists for caterers and suppliers. Procurement Cards work for most food & beverage bills (except direct liquor store purchases) under $5,000; for larger orders, and direct purchases from liquor stores, issue a purchase order through the Procurement Service Center. Direct buys from grocery stores or liquor outlets are fine for small events but require itemized receipts or invoices.
• Budgeting and Reporting:Allocate via account 550102 (Official Functions with Alcohol) when using gift funds and an expense account that most appropriately describes the conference when using auxiliary funds (note that 550102 should not be used on auxiliaries). For conferences, build costs into registration fees. Track all expenses for year-end audits—exempt purchases still need documentation.
• Inclusivity Focus:Offer diverse options to ensure everyone feels welcome, including non-alcoholic beverages and allergen-free choices.

Consult theÌýÌýfor full details.

A Note on Incorporating Alcohol

Alcohol is permitted at approved events. The governmental exemption applies here, too. Purchases of alcoholic beverages for official functions are tax-exempt if documented properly.

For events with alcohol, you may need to secure a Special Event Permit (SEP) from the Colorado Department of Revenue 60 days ahead via campusalcoholagent@colorado.edu. Review our Alcohol Service on Campus Policy for safeguards like over-service prevention and CUPD consultation.

Stay Safe, Stay Compliant

Hosting compliant events keeps our community thriving. For tailored advice, reach out to Events Planning & Catering, and Compliance, Ethics and Policy.