Did you know that the University of Illinois System is exempt from sales and use taxes when purchasing goods and services for official system business within the State of Illinois? See below for further details:
- Since the system is a state agency and was formed for educational purposes, the Illinois Department of Revenue issued the system a sales tax exemption certificate.
- Thus, employees making purchases for official system use should not pay sales or use tax in Illinois. This includes purchases of business meals and retirement gifts for employees.
- Units that do not properly apply the system’s tax-exempt status may be asked to provide justification for any taxes paid in error and may need to seek reimbursement or a credit from the vendor.
- The sales tax exemption certificate is available under the State of Illinois Sales Tax Exemption Certificate heading in Section 18.6 of the Business and Financial Policies and Procedures. You may present this certificate to a vendor as proof of the sales tax exemption if requested.
- Vendors are not required to honor the exemption. If a vendor declines, departments must document the situation for audit trail purposes.
- The system also is exempt in several other states. Additional details are located under the Purchases from Other States heading in Section 18.6.
Contact
For further details, feel free to reach out to one of our applicable subject matter experts by searching “Tax” within the Business and Finance Who to Ask list.
The Tax Compliance and Analysis office is also available to assist and can be reached at treasurytax@uillinois.edu or (217) 244-8359.
