Illinois Department of Revenue Equipment Exemption Certificate

Retain the completed ST-587 form in your records and do not mail it to the Illinois Department of Revenue. Use it to certify tax-exempt equipment purchases. It can be submitted to the relevant seller either electronically or in paper form. Ensure that all fields are accurately completed and include the signature and date. Regularly update blanket certificates every three years or whenever the percentage of exempt purchases changes. For any questions, visit tax.illinois.gov.

The Illinois Equipment Exemption Certificate (ST-587) should be kept up-to-date and reviewed every three years to ensure compliance. No specific submission deadlines are provided, but updates should reflect changes in exempt purchase percentages. Regular reviews help maintain accurate records.

The Illinois Equipment Exemption Certificate (ST-587) serves as a documentation tool used by purchasers of certain equipment to claim tax exemptions. This form ensures that eligible equipment, primarily used in manufacturing, agriculture, and mining, is recognized for tax-free status. Proper completion and retention of this form help both buyers and sellers comply with Illinois tax laws and regulations. By presenting this form, purchasers affirm that the equipment bought will be used for qualified purposes, thereby informing the seller and tax authorities of its tax-exempt status. This formal process prevents any misunderstanding and provides a clear record of tax-exempt transactions, benefiting all parties involved. Overall, the ST-587 form is crucial for tax compliance, helping businesses manage their expenses related to equipment purchases. It underscores the importance of detailed documentation to support tax exemption claims, facilitating smoother transactions and reducing the likelihood of disputes or audits.

• 1. Seller’s Name: Provide the full legal name of the seller.
• 2. Seller’s Address: Enter the complete address of the seller, including the street number and name, city, state, and ZIP code.
• 3. Seller’s Phone Number: Include the seller’s phone number for contact purposes.
• 4. Purchaser’s Name: Provide the full legal name of the purchaser.
• 5. Purchaser’s Address: Enter the complete address of the purchaser, including the street number and name, city, state, and ZIP code.
• 6. Purchaser’s Illinois Account ID Number, FEIN, or SSN: Specify the Illinois account ID number, Federal Employer Identification Number, or Social Security Number of the purchaser.
• 7. Date of Purchase: Provide the month, day, and year of the equipment purchase.
• 8. Equipment Type: Specify the type of equipment being purchased.
• 9. Serial Number: Include the serial number of the equipment.
• 10. Usage Indication: Indicate how the equipment will be used by checking the appropriate box.
• 11. Purchaser’s Signature and Date: The purchaser must sign and date the form to certify its accuracy.

Failure to submit the ST-587 form can result in the equipment purchase being subject to tax and potential penalties.

• Tax Liability: Without the form, the purchase may not qualify for tax exemption, leading to additional costs.
• Penalties: Non-compliance with tax laws can result in fines and penalties.
• Audit Issues: Lack of documentation can trigger audits and extended scrutiny from tax authorities.

• 1. Manufacturing Equipment Purchases: For equipment used in the manufacturing or assembling of tangible personal property.
• 2. Agricultural Equipment Purchases: For equipment used primarily in production agriculture.
• 3. Mining Equipment Purchases: For equipment used primarily in coal and aggregate exploration and mining.
• 4. Leasing Equipment: For documenting equipment leases related to agriculture or mining.
• 5. Seller Record Keeping: To provide proof of tax-exempt sales to Illinois Department of Revenue.