Illinois Certificate of Eligibility for Sales and Use Tax Exemption — Community Water Supply

Certificate of Eligibility for Sales and Use Tax Exemption — Community Water Supply
ST-589, Certificate of Eligibility for Sales and Use Tax Exemption — Community Water Supply
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Illinois Department of Revenue

	ST-589	

Certificate of Eligibility for Sales and Use Tax
Exemption — Community Water Supply

The seller must keep this certificate. The community water supply must always complete Steps 1 through 4. If the purchaser is a
contractor, the contractor also must complete Step 5.

Step 1:	 Identify the seller

Name _______________________________________________	Address _______________________________________________
		
Number and street
Phone (_______)______________________________________	
_____________________________________________________
			

City					State	
ZIP

Step 2:	 Identify the community water supply

Name _______________________________________________	
Date of purchase	
___ ___/___ ___/___ ___ ___ ___	
	
			
Month	
Day 	
Year
Address _____________________________________________	
Illinois EPA Water Supply Facility Number:
	
Number and street
___________________________________________________		
IL ____ ____ ____ ____ ____ ____ ____
City	

State	ZIP

Phone (_______)______________________________________	

FEIN ____ ____ - ____ ____ ____ ____ ____ ____ ____

Step 3:	 Identify the tangible personal property you are purchasing

Description of tangible personal property _____________________________________________________________________
_______________________________________________________________________________________________________
Vehicle identification number (VIN) or other identifying number for items that must be titled or registered with an agency of
Illinois state government __________________________________________________________________________________

Step 4:	 Identify how the tangible personal property will be used and sign below

This is a purchase by the community water supply identified above, and (check one)
	
	 this tangible personal property is being purchased and used in the construction or maintenance of structures and
physical plant owned by the community water supply and will be physically incorporated into the structures and physical
plant; or
	
	 this tangible personal property will not be physically incorporated into the structures and physical plant owned by a
community water supply but is being purchased for use in the construction or maintenance of a community water
supply. Note: This exempt purpose can be claimed only when the purchaser is the community water supply, not a
contractor.

Sign here
Under penalties of perjury, I state that I have examined this certificate and to the best of my knowledge it is true, correct, and
complete. I further state that the above-identified community water supply meets all the requirements of Section 2-5(39) of
the Retailers' Occupation Tax Act and that the not-for-profit corporation is in good standing and has not been dissolved. If
the not-for-profit corporation is a foreign not-for-profit corporation, I also state that it has obtained a certificate of authority to
conduct affairs in Illinois and that the certificate has not been withdrawn.
_______________________________________________________________________________________ 	

__ __/__ __/__ __ __ __

Signature of chief executive officer or duly authorized designee				

Date

Step 5:	 If the purchaser is a contractor, also complete the following and sign below
Contractor's Name _________________________________	Address _______________________________________________
		
Number and street
Phone (_______)______________________________________	_____________________________________________________
	

City	

State	ZIP

I am a contractor and the tangible personal property I am purchasing will be physically incorporated into the structures and
physical plant owned by a community water supply in fulfillment of a construction contract with a not-for-profit corporation that
operates the community water supply and is eligible for this exemption. Under penalties of perjury, I state that I have examined
this certificate and, to the best of my knowledge, it is true, correct, and complete.
_______________________________________________________________________________________ 	

__ __/__ __/__ __ __ __

Contractor's signature					

Date

If you have questions about the community water supply sales and use tax exemption, call the Illinois Department of Revenue
at (217) 785-6606. Additional forms are available on our website at tax.illinois.gov.
ST-589 (N-10/15)

This form is authorized as outlined under the tax or fee Act imposing the tax or fee for which this form is filed. Disclosure of this
information is required. Failure to provide information may result in this form not being processed and may result in a penalty.

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Instructions for Form ST-589, Certificate of Eligibility for Sales
and Use Tax Exemption — Community Water Supply
General Information
When is an exemption certificate required?

Can I use my own equivalent form?

A community water supply purchaser (or a contractor) claiming a
sales and use tax exemption must provide to the seller either Form
ST-589, Certificate of Eligibility for Sales and Use Tax Exemption —
Community Water Supply, or an equivalent as proof that no tax is
due on certain sales.

Yes. As noted above, you can use other forms or statements in place
of this certificate, provided the certificate contains the following:
•	 the name of the not-for-profit corporation operating the
community water supply;
•	 the location or address of the community water supply;
•	 a statement that the community water supply identified in the
certificate meets all the requirements of Section 2-5(39) of the
Retailers' Occupation Tax Act;
•	 a statement that the not-for-profit corporation is in good standing
and has not been dissolved (a foreign not-for-profit corporation
also shall state that it has obtained a certificate of authority to
conduct affairs in Illinois and that the certificate has not been
withdrawn);
•	 a description of the tangible personal property being purchased;
•	 a statement that the tangible personal property is either:
-	 being purchased and used in the construction or
maintenance of structures and physical plant owned by a
community water supply and physically incorporated into the
structures and physical plant; or
-	 being purchased for use in the construction or maintenance
of a community water supply by a community water supply;
and
•	 the signature of the chief executive officer of the not-for-profit
corporation operating the community water supply or the chief
executive officer's duly authorized designee.
If the purchaser is a contractor, the equivalent certificate also must
contain a signed statement that the tangible personal property will be
physically incorporated into the structures and physical plant owned
by a community water supply in fulfillment of a construction contract
with a not-for-profit corporation that operates the community water
supply and is eligible for this exemption.

What sales qualify for the exemption?
The following types of sale qualify as exempt:
•	 sales of tangible personal property purchased and used in the
construction or maintenance of structures and physical plant
owned by a community water supply, when the tangible personal
property is physically incorporated into the structures and
physical plant; or
•	 sales of tangible personal property purchased and owned by a
community water supply, when the tangible personal property
is not physically incorporated into the structures and physical
plant owned by a community water supply but is used in the
construction and maintenance of a community water supply.
See 86 Ill. Adm. Code 130.1934(c), for a detailed list of tangible
personal property that does and does not qualify for this exemption.

Who keeps the exemption certificate?
The seller must keep the certificate as proof that no tax was due
on the sale of the specified tangible personal property. Unless
requested, do not mail the certificate to us. A retailer that obtains
proper certification is relieved of any tax liability relating to the sale in
the event the tangible personal property purchased by the community
water supply is not used by the community water supply in the
construction or maintenance of the community water supply identified
in the certificate of eligibility for sales tax exemption issued by the
not-for-profit corporation.

Do leases of tangible personal property qualify for
the exemption?
No. Purchases of tangible personal property by a lessor to be
leased to a community water supply for use in the construction
or maintenance of structures and physical plant owned by the
community water supply do not qualify for the exemption.

What if I have questions?
For questions related to the community water supply sales and use
tax exemption, call us at (217) 785-6606.

Specific Instructions
The community water supply must always complete Steps 1 through
4. If the purchaser is a contractor, the contractor also must complete
Step 5.

Step 1: Identify the seller
Provide the seller's name, address, and phone number on the lines
provided.
Note: The seller must keep this certificate.

Step 2: Identify the community water supply
Provide the community water supply's name, address, phone
number, and date of purchase on the lines provided. You also must
provide the community water supply's Illinois EPA water supply
facility number and FEIN.

Step 3: Identify the tangible personal property you
are purchasing
Describe the tangible personal property you are purchasing. If the
tangible personal property is an item that must be titled or registered
with an agency of Illinois state government, you also must provide
the Vehicle Identification Number (VIN) or other identifying number.
ST-589 Instructions (N-10/15)

Step 4: Identify how the tangible personal property
will be used and sign below
The community water supply must check the box to indicate how the
tangible personal property will be used. Either the chief executive
officer of the not-for-profit corporation operating the community water
supply or the chief executive officer's duly authorized designee must
sign and date the form.

Step 5: If the purchaser is a contractor, also
complete the following and sign below
Provide the contractor's name, address, and phone number. The
contractor also must sign and date the form.