FUSE Sales Tax FAQ

Maybe you've seen Illinois sales tax on your FUSE quote, or maybe you're a new partner and we've asked you to apply for an Illinois sales tax exemption. Either way, you might be saying "Wait. I'm not in Illinois! Why is my stuff subject to Illinois sales tax! This is weird!"

Well, yeah. It is weird. Taxes are often weird.  But check out our FAQ and it will hopefully answer all your questions!

Why are my FUSE supplies subject to Illinois sales tax?

FUSE materials are delivered via a process called “Drop Shipping.” We send your order straight to our vendor and they send your materials straight to you. No matter what state you’re located in, since we order them for you here in Illinois, Illinois considers these to be Illinois sales, and so charges Illinois sales tax on them.

Our school/organization is tax exempt in our state, or there is no sales tax in my state. Why are we being charged Illinois sales tax?

Because your materials are drop shipped (and because Illinois considers the drop shipped materials we order for you here at FUSE in Evanston, IL to be Illinois sales) the materials incur Illinois sales tax.

The only criteria which removes Illinois sales tax is a valid Illinois sales tax exemption number, issued by the IL Dept. of Revenue.  

We're a new FUSE partner, why do we need to apply for an Illinois sales tax exemption?

Having an Illinois tax sales tax exemption number will let you get your FUSE materials without having to pay Illinois sales tax. Without an Illinois Sales Tax Exemption number, you will have to pay the 10.25% Evanston, Illinois Sales Tax on all FUSE materials. 

How do we apply for Illinois tax exemption?

You'll need to fill out and submit Illinois Department of Revenue form STAX-1. You can submit it online, or you can download the PDF and mail it to the IL Department of Revenue. Here's the link to get started! As referenced below, if you are able to apply at the school district level (vs. an individual school), the paperwork is much less work. 

Who do we send form STAX-1 to?

The Illinois Department of Revenue. If you download the PDF and mail it in, the correct address is at the bottom of the form.

How long does it take to hear back from the Illinois Department of Revenue?

Usually about 60 days.

Our school/organization isn’t located in Illinois and we are already tax exempt in our state (or at the federal level) - do we still have to apply for tax exemption in Illinois?

Yes. Tax exemption at the federal level, or in another state, does not affect whether the state of Illinois recognizes you as tax exempt. The only way to prove tax exemption for the state of Illinois is to go through the tax exempt application process, via the info linked above. 

Our school/organization isn’t located in Illinois and we aren't tax exempt in our state - can we even apply for tax exemption in Illinois?

Yes, you can still apply for tax exemption in Illinois! Your status as tax exempt (or not) in another state, or at the federal level, does not affect whether the state of Illinois recognizes you as tax exempt. 

Should we apply as an "educational organization" or as a "governmental body"?

If you are applying as an individual school, select "educational organization". If you’re applying as a district, select "governmental body". The "governmental body" designation requires you to submit less supporting documentation, so we recommend that you apply as a district if at all possible. 

What do we do with the Illinois Sales Tax Exemption number/certificate once we have it?

You (or whoever files the application for your school or district) will receive an email copy of your certificate once your application is processed. Please send a copy of your certificate to Destiny at [e-mail]. 

Our district has an Illinois tax exemption number. Do we still have to apply for tax exemption in Illinois?

Probably not. Please verify that it is, in fact, an Illinois Sales Tax Exemption Number, confirm with your district that the tax exemption covers all the schools of the district and send a copy of the certificate  to [e-mail].