Exempt Organizations Liable for Excise Taxes on Utilities in Illinois

The Illinois Department of Revenue has issued guidance to a taxpayer regarding exemptions for nonprofit organizations. Nonprofit organizations that receive an exemption identification number (E number) from the Department are exempt from state sales and use tax when purchasing tangible personal property in furtherance of their organizational purposes. However, organizations that have an E number are liable for excise taxes, such as the Electricity Excise Tax, the Gas Revenue Tax and other charges, fees, and costs that may be added to utility bills. The Department does not collect or administer local utility taxes and recommended that the taxpayer contact the municipality to see what exemptions may be available. (General Information Letter ST 15-0054-GIL, Illinois Department of Revenue, August 27, 2015)

Posted on November 23, 2015