Tax Exempt Status

Making Purchases

The University of Illinois is an instrumentality 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 University as exempt from federal income tax under Section 501(c)(3).

In addition, the University 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 University, please present suppliers with the University's sales State of IL Sales Tax Exempt Letter Link opens PDF file to avoid paying sales tax on purchases.

For additional information, see the sales tax exemptions area of the P-Card Manual and the OBFS Policies and Procedures Manual Section 18.6, Sales and Use Tax.

Last Updated: July 12, 2012