Renewing Illinois Sales Tax Exemption: Everything You Need to Know

Groceries, prescription medications, and medical gadgets are just a few of the things Illinois exempts from paying sales tax on. However, companies and nonprofits may also be eligible for a sales tax exemption. To continue receiving the benefits of a sales tax exemption in Illinois, you must renew your certificate before it expires. We will address the main query, “How do I renew my Illinois sales tax exemption?” as well as associated queries in this article.

What Products are Illinois Sales Tax Exempt?

In Illinois, some medical supplies, prescription medications, and food intended for human use are all excluded from paying sales tax. Illinois additionally exempts inventories and raw materials that are bought for resale. Non-profit organizations may additionally be entitled to sales tax exemption on purchases made for their philanthropic objectives.

Does Certificate of Registration Have an Expiration Date?

You must renew your Illinois sales tax exemption certificate before it expires in order to keep receiving the benefits of the exemption. After five years, your certificate of registration expires, and you must reapply to have it renewed.

In Illinois, are 501(c)3s exempt from sales tax?

Yes, non-profit organizations with 501c3 status are often exempt from Illinois’s sales tax. A portion of the Internal Revenue Code known as 501c3 lays forth requirements for organizations that are exempt from paying taxes. The organization must adhere to the IRS’s requirements, including being exclusively organized and conducted for religious, charitable, scientific, or educational purposes, in order to be eligible for exemption. What is the procedure for renewing an Illinois resale certificate?

You must submit an ST-1 form to the Illinois Department of Revenue in order to renew your Illinois resale certificate. The form can be submitted online or by mail. To prevent a lapse in your tax-exempt status, make sure to submit the renewal application prior to the expiration of your present certificate.

In conclusion, maintaining your Illinois sales tax exemption benefits requires renewing your certificate of exemption. Before the certificate expires, you must renew it by submitting an ST-1 form to the Illinois Department of Revenue. In Illinois, non-profit organizations with 501c3 status are additionally free from paying sales tax, and your resale certificate enables you to buy products for resale without having to pay sales tax.

FAQ
You can also ask how much does it cost to get a tax id number in illinois?

It is free to obtain an Employer Identification Number (EIN), commonly referred to as a tax identification number, in Illinois. You can apply for an EIN online at the IRS website or by mailing the IRS a filled-out Form SS-4.