Tax Exemption Letter

State of Illinois Sales Tax Exemption Letter - This letter is to be executed by an authorized/approved purchaser within schools/departments. The letter is a Microsoft Word document that can be filled out electronically and printed. If you need an official copy of the State of Illinois letter faxed to a vendor, please contact Purchasing Resource Services.

NU's Tax-Exempt Status in Other States

Tax-Exempt Status

Northwestern University is a private, not for profit, nonsectarian, coeducational institution, created by Charter by the State of Illinois in 1851. The University is exempt from Sales and Use Tax, Retailer's Occupation Tax, Service Occupation Tax (both state and local), Use Tax, Service Use Tax in the State of Illinois.

If a vendor will not accept a copy of the Northwestern tax-exempt letter, Purchasing Resource Services can send a copy of the official tax exemption certificate to vendors upon department/school request.

• Exceptions - The University is NOT exempt from Food and Lodging Tax on hotel rooms and meals. Exceptions to this rule apply to catered type meetings and events, which fall under Sales and Use Tax. However, please note that the University is NOT exempt from other taxes associated with these type of events, such as City Tax, A/V Equipment Tax, Entertainment Tax, etc.
• Use of University Tax Status - This tax exemption is to be used exclusively to make purchases for use by Northwestern University and is not for personal use by individuals, faculty, staff, or students. Any purchase by a student organization must be University related and paid for through University funds. Misuse of the University’s tax privileges could affect our tax-exempt status.
• Sales and Use Taxes in Other States - As a non-profit educational institution, the University may also realize Sales and Use tax exemptions in several other states. This would apply to events that you are planning in another state, or if you need to purchase goods and/or services from a vendor located in another state. Purchasing Resource Services maintains a list of those states that recognize the University as tax-exempt in one form or another and can make arrangements to have an official tax exemption certificate forwarded to the vendor upon department/school request.

Reimbursement for Taxes

Since the University is exempt from paying Sales and Use Tax, these taxes are generally not reimbursable unless they are specifically for University related business. This may apply to business travel and entertainment services, as well as other food or incidental purchases made from local vendors or grocers. An individual may request reimbursement from the head of the department where it can be shown that it was not reasonable to require the individual to obtain a University purchase order. Though there may be other situations, this normally occurs where either the University was not eligible for tax-exempt status (i.e., making purchases for use in other states where the University does not have tax-exempt status), or for occupancy tax which often arises for catered type meetings and events.