Illinois Graphic Arts Machinery and Equipment Exemption Regulation Updated

An Illinois sales tax regulation exempting graphic arts machinery and equipment from the Retailers’ Occupation Tax was updated to include the new sunset date of the exemption as August 30, 2014. It also enacts the requirement that qualifying graphic arts machinery and equipment must be used primarily in the production of tangible personal property for wholesale or retail sale or lease as of July 30, 2009. This requirement also applies to new and used repair and replacement parts, including equipment that is manufactured on special order to be used primarily in graphics art production. Additionally, persons engaged primarily in the business of printing or publishing newspapers or magazines that qualify as newsprint or ink (as specified by processes described in the North American Industry Classification System) are deemed to be engaged in graphic arts production. For an update on this news item, click here. (86 Ill. Adm. Code 130.325, Illinois Department of Revenue, effective January 24, 2011)

Posted on April 19, 2011