Tax Exempt Status

Making Purchases

The University of Illinois System is an instrument of the State of Illinois, and as such, it is exempt from federal income tax under Section 115 of the Internal Revenue Code. The Internal Revenue Service also recognizes the U of I System as exempt from federal income tax under Section 501(c)(3).

In addition, the U of I System is exempt from the following Illinois state and local taxes:

• Income Tax
• Real Property Tax
• Retailers' Occupation Tax
• Service Occupation Tax
• Use Tax and Service Use Tax

When making purchases on behalf of the U of I System, please present suppliers with the U of I System's sales State of IL Sales Tax Exempt Letter to avoid paying sales tax on purchases.

For additional information, see the Business and Financial Policies and Procedures Manual Section 18.6, Sales and Use Tax/Goods and Services Tax.