7.1.54 Retailer's Occupation Tax (State Sales Tax) and City of Bloomington/Town of Normal Prepared Food and Beverage Sales Tax

Policy

Retailer's Occupation Tax (State Sales Tax)

The Illinois Administrative Code, Chapter I (Department of Revenue), PART 130 (Retailers' Occupation Tax) requires the collection and remittance of sales tax. Illinois State University is generally exempt from the payment of Illinois Sales Tax since it has been granted a Governmental Exemption provided for under the tax code. It states that the following types of sales by exclusively educational organizations are exempt:

1. Sales made to the organizations' members or students primarily for the purposes of the selling organization
2. Infrequent sales that are noncompetitive with business establishments, and
3. Sales at social activities held not more than twice yearly.

City of Bloomington/Town of Normal Prepared Food and Beverage Sales Tax

Currently there are three tax rates on sales which are not specifically exempted from sales tax. The rate of 7.75% is paid on all merchandise except qualifying food, drugs, and medical appliances which are taxed at the rate of 1%. Additionally, the City of Bloomington/Town of Normal charge a 2% tax on prepared food and beverages.

Coordination of the reporting and remittance of State sales tax is performed by the Comptroller's Business Office. Every unit or department which makes sales should contact the accounting office to see if the sales are subject to sales tax withholding. Examples of sales which are subject to sales tax are: concessions, conferences, merchandise sales, photo services, certain guest meals, and sales of medical appliances.

Guidelines

The University must file the ST-1 sales tax form on or before the 20th day of the month following the end of the reporting period. In order to meet the filing deadline, information concerning taxable sales should be submitted to Mail Code 1200 Comptroller's by the 10th of the month. The information should state the gross total sales, the tax collected, and the net amount of sales. Areas incurring a sales tax liability are charged directly on an invoice voucher.