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Information about Foreign Diplomats for Retailers and Hotel Operators (PIO-130)

A foreign diplomat is an official from a foreign country who is stationed in the United States while working as a diplomat, consular officer, or staff member at a foreign mission and may be eligible to make tax-exempt purchases in Illinois.

How do my customers certify that a purchase is exempt from tax?

Your customer will present you with a tax exemption card issued by the U.S. Department of State’s Office of Foreign Missions. The card will provide a photo identification of the bearer, the name of the country for whose mission the card is issued, a tax exemption number, a card expiration date, and an image of an animal (an owl, eagle, buffalo, or deer) identifying the terms of the exemption. The card is valid for tax-exempt purchases only by the bearer identified on the card. The card may not be used by another person representing the person identified on the card (such as a spouse), nor may any other form of identification be used in place of the card (such as a letter). You may verify the card’s validity online using the Office of Foreign Missions Tax Exemption Verification.

What kinds of tax exemption cards are issued?

The U.S. Department of State, Office of Foreign Missions, issues four types of tax exemption cards:

  • Official Purchases Only, Without Restrictions (owl)
  • Official Purchases Only, With Restrictions (buffalo)
  • Personal Tax Exemption, Without Restrictions (eagle)
  • Personal Tax Exemption, With Restrictions (deer).

In order to receive the exemption, your guest must provide you with proper identification.

If a foreign diplomat has an image of: 

  • an owl, the card is to be used solely in connection with official purchases; the cardholder/mission is eligible for exemption from sales, occupancy, restaurant/meal, and other similarly imposed taxes without restriction.
  • a buffalo, the card is to be used solely in connection with official purchases; the cardholder/mission is subject to some degree of restriction on exemption from sales, occupancy, restaurant/meal, and other similarly imposed taxes. (For example, such cards may read “EXEMPT FROM TAXES IMPOSED ON PURCHASES OVER $300; NOT VALID AT HOTELS”.)
  • an eagle, the card is to be used solely in connection with personal purchases; the cardholder is eligible for exemption from sales, occupancy, restaurant/meal, and other similarly imposed taxes without restriction.
  • a deer, the card is to be used solely in connection with personal purchases; the cardholder is subject to some degree of restriction on exemption from sales, occupancy, restaurant/meal, and other similarly imposed taxes. (For example, such cards may read “EXEMPT FROM TAXES IMPOSED ON PURCHASES OF HOTEL STAYS, RESTAURANT MEALS, AND RENTAL CARS”.)

A foreign diplomat with an Official Purchases Only card (an owl card, or a buffalo card that does not specifically restrict hotels), may rent hotel rooms on behalf of the mission and obtain tax exempt lodging for visitors or nonaccredited persons. The individual using the card does not need to stay at the hotel. The hotel bill must be paid with a mission credit card or a mission check. Personal credit cards, checks, or cash may not be used.

The foreign diplomat with a Personal Tax Exemption card (eagle or deer image) may not pay for hotel rooms of those outside his or her immediate family.

How do I document the exempt purchase?

If you file Form ST-1, Sales and Use Tax Return, enter either “Foreign Consul” (for individuals) or “Foreign Mission” (for missions), as appropriate on Line 16, Other, of the ST-1 Worksheet for Line 2. Next, enter the amount you collected from the sale on the line provided. You must record in your books and records the mission name, the card holder’s name, the exemption number, the expiration date, and the image of the animal on the card; or you should retain a photocopy of the card (front and back).

If you file Form ST-556, Sales Tax Transaction Return, enter either “Foreign Consul” (for individuals) or “Foreign Mission” (for missions), as appropriate, on the line provided in Section 5, Box F, Other. You must record in your books and records the mission name, the card holder’s name, the exemption number, the expiration date, and the image of the animal on the card; or you should retain a photocopy of the card (front and back).

If you file Form RHM-1, Hotel Operators’ Occupation Tax Return, enter either “Foreign Consul” (for individuals) or “Foreign Mission” (for missions), as appropriate, in Step 1, Line 4, Other deductions, on the line provided. Next, enter the amount you collected from the sale on the line provided. You must record in your books and records the mission name, the card holder’s name, the exemption number, the expiration date, and the image of the animal; or you should retain a photocopy of the card (front and back).

What if a customer uses a previously issued version of the card to certify an exempt purchase?

If the expiration date on the face of the card shows that the card is current and issued by the U.S. Department of State, you may accept “older” cards to certify exempt purchases.

What payment methods must be used with mission tax exemption cards?

All purchases in which mission tax exemption cards are used must be paid for by mission check or credit card. This restriction, however, does not apply to the use of personal tax exemption cards used by individuals.

Where can I get more information about foreign diplomats and tax exemption cards?

If you would like more information about foreign diplomats and their eligibility for exemption from taxes or to request a copy of Diplomatic Tax Exemption Program, email the Office of Foreign Missions at OFM-FMS@state.gov or by mail:

OFFICE OF FOREIGN MISSIONS
CHICAGO REGIONAL OFFICE
230 S. DEARBORN ST., SUITE 416
CHICAGO, IL 60604
Phone: 312-363-5762
Fax: 312-353-5768

OR

OFFICE OF LEGAL SERVICES (5-500)
ILLINOIS DEPARTMENT OF REVENUE
101 WEST JEFFERSON STREET
SPRINGFIELD, IL 62702

This publication is written to inform you of recent changes. It does not replace statutes, rules and regulations, or court decisions.

PIO-130 (N-08/26)