What Qualify You for Exempt Sales Tax

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					PRINTING INDUSTRY OF IL/IN ASSOCIATION
March, 2007

TAXABILITY MATRIX
PURCHASES OF GRAPHIC ARTS RELATED MACHINERY AND EQUIPMENT, ETC. IN ILLINOIS

Effective September 1, 2004, the state of Illinois reinstated the Graphic Arts Machinery and Equipment Exemption
and the Manufacturers Purchase Credit .

This matrix will aid you in determining the taxibility of your purchases.
If you have any questions, please contact Joanne Rock at PII, 312-580-3032 or jrock@pii.org

                                                                  A            B                C                      D                     E

                                                             Exempt from Subject to      Subject to Sales/       Can Purchase               Other
     Item                                                     Sales/Use Sales/Use        Use Tax but can           for Resale if         Reason(s)
                                                            Tax (ST-587)1  Tax2         use MPC (ST-16C)3     Registered4 (CRT-61)5    for Exemption

     aqueous coating                                                                                                     X
     automatic blanket washer                                    X
     automatic blanket washer cloths                                                             X
     baling equipment                                                           X ----> UNLESS you are selling the baled paper, then EXEMPT from tax
     bar code readers (inventory tracking)                                      X           under the Manufacturers Machinery & Equipment Equipment
     binders                                                     X
     bindery cart                                               X (if used >50% between press and finishing equipment; else Column C)
     blankets                                                    X
     blanket wash                                                                                X
     cartons to ship finished product                                                                                    X
     cartoning systems                                           X
     carts used to move print jobs from press to bindery         X
     chemistry used in film/plate development                    X
     chemistry used on press (washup, etc.)                                                      X
     chilling and cooling towers                                 X
     collators                                                   X
     compressor (for presses)                                    X
     computer memory expansion for prepress department           X
     computer to plate system                                    X
     computer to press sytem                                     X
     construction costs for building expansion for new press X,subject to limitations
     cutter                                                      X
     cutter blades                                               X
     developer                                                   X
     dies                                                        X
     digital cameras that create the original image                             X
     dryers                                                      X
     etching fluids                                              X
     filters (for heatset presses)                               X
     film                                                                                        X
     first aid kits                                                             X
     fluid paks (for platemaking)                                X
     folder                                                      X
     forklift                                                   X (if used >50% between press and finishing equipment; else Column C)
PRINTING INDUSTRY OF IL/IN ASSOCIATION
March, 2007

TAXABILITY MATRIX
PURCHASES OF GRAPHIC ARTS RELATED MACHINERY AND EQUIPMENT, ETC. IN ILLINOIS

Effective September 1, 2004, the state of Illinois reinstated the Graphic Arts Machinery and Equipment Exemption
and the Manufacturers Purchase Credit .

This matrix will aid you in determining the taxibility of your purchases.
If you have any questions, please contact Joanne Rock at PII, 312-580-3032 or jrock@pii.org

                                                                  A            B                 C                         D                          E

                                                             Exempt from Subject to      Subject to Sales/         Can Purchase                     Other
     Item                                                     Sales/Use Sales/Use        Use Tax but can             for Resale if               Reason(s)
                                                            Tax (ST-587)1  Tax2         use MPC (ST-16C)3       Registered4 (CRT-61)5          for Exemption


     fountain solution                                                                            X
     gatherers                                                    X
     gloves                                                                                       X
     hand tools                                                                                   X
     high intensity lighting for press room                                                       X
     humidity control equipment for static                        X
     imagesetters                                                 X
     ink                                                                                                                    X
     ink additives                                                                                X
     ink fountain liners                                                                          X
     ink jet equipment                                            X
     ink jet supplies                                                                                                       X
     inventory tracking devices                                                X
     labelling machine                                            X
     labels                                                                                                                 X
     laser printers                                               X
     leasehold improvements for production area                                       X (call our office to discuss your particular fact situation)
     mounting tape (for flexo plates)                             X
     offline mailing equipment                                    X
     office supplies                                                           X
     palletizers                                                  X
     paper                                                                                                                  X
     paper for office copier                                                   X
     plates                                                       X
     powder                                                                                       X
     prepress computer systems                                    X
     press packing (for blankets)                                 X
     proofing equipment                                           X
     proofing materials                                                                           X
     protective eyewear for bindery employees                                                     X
     punchers                                                     X
     racks used to store finished goods                                                           X
     racks used to store raw materials                                                            X
PRINTING INDUSTRY OF IL/IN ASSOCIATION
March, 2007

TAXABILITY MATRIX
PURCHASES OF GRAPHIC ARTS RELATED MACHINERY AND EQUIPMENT, ETC. IN ILLINOIS

Effective September 1, 2004, the state of Illinois reinstated the Graphic Arts Machinery and Equipment Exemption
and the Manufacturers Purchase Credit .

This matrix will aid you in determining the taxibility of your purchases.
If you have any questions, please contact Joanne Rock at PII, 312-580-3032 or jrock@pii.org

                                                                  A            B                C                      D                         E

                                                             Exempt from Subject to      Subject to Sales/       Can Purchase                   Other
     Item                                                     Sales/Use Sales/Use        Use Tax but can           for Resale if             Reason(s)
                                                            Tax (ST-587)1  Tax2         use MPC (ST-16C)3     Registered4 (CRT-61)5        for Exemption



     refrigerator for employee lunchroom                                       X
     replacement grippers                                         X
     repacement parts for any exempt equipment                    X
     RIP software                                                 X
     roller revitalizer solvents                                                                 X
     rollers                                                      X
     scorer                                                       X
     servers used for production equipment                        X
     shelving units in the plant                                                                 X
     shop rags                                                                                   X
     shrink wrap                                                                                                       X
     shrink wrap equipment (inline or offline)                    X
     software--customized for your company                        X
     software downloaded from the internet                                                                                            statutorily exempt
     software upgrades for prepress systems                                                      X
     software upgrades for office computer systems                             X
     solvents used for press/parts wash up                                                       X
     stackers                                                     X
     stitcher                                                     X
     stitcher head                                                X
     strappers                                                    X
     stretch wrappers                                             X
     toner inks                                                                                                        X
     transformers (to power exempt equipment)                     X
     uniforms for press operators (that you bought)                            X
     uniforms for press operators (that you rent)                                                                                  service-not taxable
     uv coating                                                                                                       X
     ventilation systems                                                      X, unless used to produce environment necessary for print production
     viewing table                                                                              X
     wash up solution                                                                           X
     WD-40                                                                                      X
     welding tools                                                            X
PRINTING INDUSTRY OF IL/IN ASSOCIATION
March, 2007

TAXABILITY MATRIX
PURCHASES OF GRAPHIC ARTS RELATED MACHINERY AND EQUIPMENT, ETC. IN ILLINOIS

Effective September 1, 2004, the state of Illinois reinstated the Graphic Arts Machinery and Equipment Exemption
and the Manufacturers Purchase Credit .

This matrix will aid you in determining the taxibility of your purchases.
If you have any questions, please contact Joanne Rock at PII, 312-580-3032 or jrock@pii.org

                                                                  A            B                C                      D                   E

                                                             Exempt from Subject to      Subject to Sales/       Can Purchase              Other
     Item                                                     Sales/Use Sales/Use        Use Tax but can           for Resale if        Reason(s)
                                                            Tax (ST-587)1  Tax2         use MPC (ST-16C)3     Registered4 (CRT-61)5   for Exemption
     xerographic technology (use of, to print)                                                  X
PRINTING INDUSTRY OF IL/IN ASSOCIATION
March, 2007

TAXABILITY MATRIX
PURCHASES OF GRAPHIC ARTS RELATED MACHINERY AND EQUIPMENT, ETC. IN ILLINOIS

Effective September 1, 2004, the state of Illinois reinstated the Graphic Arts Machinery and Equipment Exemption
and the Manufacturers Purchase Credit .

This matrix will aid you in determining the taxibility of your purchases.
If you have any questions, please contact Joanne Rock at PII, 312-580-3032 or jrock@pii.org

                                                                   A            B                 C                        D                         E

                                                             Exempt from Subject to       Subject to Sales/        Can Purchase                      Other
     Item                                                     Sales/Use Sales/Use         Use Tax but can            for Resale if                Reason(s)
                                                            Tax (ST-587)1  Tax2          use MPC (ST-16C)3      Registered4 (CRT-61)5           for Exemption



   1 Exempt from Sales/Use Tax (ST-587) --because this item is considered to be Graphic Arts Machinery, Equipment or a Repair
     or Replacement Part by statute. This also includes chemistry that has an immediate effect upon the product, therefore
     the chemistry used to develop film or plates is exempt under this statute.

   2 Subject to Sales/Use Tax -- not considered to be used in the actual graphic arts production process

   3 Subject to Sales/Use Tax but can use MPC (ST-16C) -- items that are used in the actual production process but are
     not statutorily exempt as machinery, equipment, etc. are subject to sales/use tax however you may reduce the tax
     due by the state tax amount of 6.25% if you are accumulating Manufacturers Purchase Credit (see our bulletin on MPC for more)

   4 Pass Through Exemption : Unregistered demiimus servicemen may utilize the 'pass-through' exemption for customers who are
     tax-exempt (they possess a registration from the state that has the format E-#########), for jobs that will ship in interstate commerce,
     or jobs that qualify under the Newsprint and Ink Exemption

   5 Can Purchase for Resale if Registered (CRT-61) -- items that will transfer to your customer may be purchased for resale if you are
     registered with the state (you have an eight digit registration number xxxx-xxxx). If you are not registered, then you
     are paying tax to your suppliers for any items that transfer to your customer

				
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