The title status of inventorial equipment purchased with extramural funding is determined by the granting agency and included in the terms and conditions of the contract, grant or cooperative agreement entered into by the agency and the University. Depending upon these terms and conditions, title to all equipment may vest with either the University or the granting agency, or title may vest with either the University or the agency under varying circumstances (for example: title to all special purpose equipment vests with the University, while title to general purpose equipment vests with the agency).

Equipment Management relies upon information provided by the Sponsored Projects unit of the Office of Research (via ORBIT) when determining the title status of inventorial equipment. It is VERY helpful if the department, at the time that it submits its requisition, notes all cases in which title vests with an agency other than the University.

It is especially important to indicate when title vests with the Federal Government, since such purchases are NON-TAXABLE. All other University inventorial equipment purchases, even if title vests with the State Government or one of its agencies, are taxable. (Some vendors are under the mistaken impression that the University is exempt from paying sales tax: it is not. If a vendor does not charge applicable sales tax when invoicing an order, Accounting will assess it in the form of use tax.)