Sales tax is defined as the combination of “occupation” taxes that are imposed on a sellers’ receipts and “use” taxes that are imposed on amounts paid by purchasers. Sellers owe the occupation tax to the Illinois Department of Revenue (IDOR) but may reimburse themselves for this liability by collecting use tax from the buyers.

 

Sales tax is imposed on a seller’s receipts from sales of tangible personal property for use or consumption. This can include apparel, food and beverage items, books, and more. Tangible personal property does not include real estate, stocks, bonds, or other “paper” assets.

All University departments and student organizations are liable for the collection of sales and use tax on the sales of tangible personal property.

 

 

Loyola University Chicago is a 501(c)(3) entity under the Internal Revenue Code and is exempt from federal income tax as an educational institution. Many states also recognize our 501(c)(3) status and offer a sales-tax exemption for goods purchased in that state.

 

Qualified organizations, as determined by IDOR, may be exempt from paying sales taxes on items purchased and consumed by the organization. The two characteristics that qualify an organization from sales tax exemption in Illinois are:

• The organization must be a not-for-profit, and
• The organization must be organized and operated exclusively for charitable, religious, educational, or governmental purposes.

Loyola University of Chicago has applied for and obtained an Illinois sales tax exemption from the IDOR. The exemption letter should be provided to any suppliers when the University is purchasing tangible personal property for organizational use. Once provided, sales tax should not be assessed on the qualified purchase.

 

A copy of the Loyola University’s sales tax exemption certificate can be provided by Accounts Payables (payables@luc.edu) or requested from Alyssa Beneventi (agerdes1@luc.edu). Please include a description of the purchase and what the item will be used for with the request.

 

 

 

Loyola University Chicago has been granted an exemption from sales and use tax in other states where the University may make purchases or consume goods in that state. For example, the University may hold Athletic events, special events, or student programming. Vendors located in other states may require state specific tax exemption forms.

 

Currently the University may have an active sales tax exemption in the following states or the state has no sales tax. Please contact the vendor in advance to determine what the University may need to provide to be granted an exemption of sales tax.

 

Alaska	Hawaii	Minnesota	Ohio
Arkansas	Illinois	Missouri	Oregon
Colorado	Indiana	Montana	Texas
Connecticut	Kansas	New Hampshire	Virginia
Delaware	Massachusetts	New Jersey	Wisconsin
Florida	Michigan	New York

 

The Illinois sales tax exemption does not apply to the following other state and local taxes:

• City of Chicago Amusement Tax
• City of Chicago A/V Equipment Tax
• Hotel Operator’s Occupation Tax (Illinois, Chicago, & Cook County Hotel Tax)
• Motor Fuel Tax (Illinois, Chicago, & Cook County Gasoline & Diesel Tax)
• Parking Excise Tax (Illinois, Chicago, & Cook County Parking Tax)

LUC’s Illinois sales tax exemption letter should only be used for items that the University will use and/or consume. If any department plans to buy goods with the intention of reselling them, then the Illinois Certificate of Resale should be used. The certificate is provided to the business making the sale so that the sale can be made tax-free. For more information on using a resale certificate, please contact Alyssa Beneventi (agerdes1@luc.edu).

 

Loyola’s sales tax exemption only exempts the University from qualified purchases. The sales tax exemption does not exempt the University from sales made by departments and student organizations on tangible personal property.

 

 

Generally, tangible personal property sold in Chicago is subject to the Illinois sales tax rate of 10.25%. This rate is as of January 2023. This rate can vary depending on the type of item sold and the location of the sale. Please review the Sales Tax Reporting Template for additional information on tax rates by location. Please contact Alyssa Beneventi (agerdes1@luc.ed) if you have additional questions.

 

• Clothing and accessories (ex. T-shirts, sweatshirts, mugs, jewelry)
• Books, notebooks, and supplies
• Passport photos
• Food and beverages, snacks (ex. Event tickets that include food and beverage in the ticket price)

• Newspapers and/or magazines if it meets IDOR qualifications.
• Sales made to exempt organizations (must provide IL sales tax exemption certificate)
• Sales made to resellers

If your department or student organization plans to conduct sales of tangible personal property, please contact Alyssa Beneventi (agerdes1@luc.edu) with the following information 30 days prior to the sale:

 

• Description of the activity
• Date of proposed sale
• Type of items to be sold
• Location of sale

 

Illinois sales tax reporting and payment is due to the Illinois Department of Revenue (IDOR) by the 20^th day of the following month of the sale. (ie. August sales reporting is due September 20^th) To ensure accurate reporting to the IDOR, please deposit the taxable sales in the department’s accounting unit and sales revenue account (4070). The sales tax collected should be deposited to the department’s sales tax liability account (2031).

 

By the 10^th day of the following month of the sale, please complete and return a copy of the Sales Tax Reporting Template to Alyssa Beneventi (agerdes1@luc.edu) that details the sales period, AU and account number deposits are made into, items sold, revenue received, and sales tax collected. This should be completed for each month there is a sale.

 

The University may also be responsible for the collection of the following taxes:

 

Prior to your department engaging in the collection of revenue for any of the applicable items above, please reach out to the Tax Department.

Maria Araque, Asst. Vice President – maraque@luc.edu

Alyssa Beneventi, Tax Manager – agerdes1@luc.edu

 

 

Last Revision Date: June 2023