Indiana University is a governmental instrumentality of the State of Indiana, and a 501(C)(3) non-profit organization exempt from Federal and State corporate income taxes.  While the university is tax exempt from most income taxes associated with revenue from our exempt purpose, the university is not always exempt from state sales tax.

Depending on the circumstances, Indiana University must collect or pay sales tax.  This is especially true when the university is operating in a manner typical of a retail merchant, or when it is making a purchase outside of the university's tax exempt purpose.   Additionally, the university may be assessed, or have to collect, a tax on rental of a room along with sales tax charges. This tax is commonly referred to as an accommodation or innkeepers tax. Various counties in the State of Indiana assess this tax.