Handling Sales Tax for 3rd party

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Hi,

I work at a public university and we are about to lease a space to a caterer to provide the campus with more food options. We will charge the caterer a base rent plus percentage of gross sales.

My question is regarding sales tax. The caterer would prefer it if we ran her transactions through our Point of Sale system. So we would be receiving her revenue and would later cut her a check. If we do it this way, would we pay the sales tax and then have the caterer reimburse us?

And do you advise that I push for the career to bring in her own POS?
 

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