The Graphic Arts Exemption for Illinois originally expired as of August 30, 2014, but was recently reinstated retroactive to July 1, 2017, with the passing of law P.A. 100-0022 on July 7, 2017, as a part of the manufacturing and assembling machinery and equipment exemption.
This means that if you are purchasing graphic arts machinery and equipment, to be used in the graphic arts process in Illinois and you provide a completed ST-587, Equipment Exemption Certificate, then that purchase is exempt from Illinois sales tax. Prior to August 30, 2014, graphic arts machinery and equipment was exempt from sales tax as long as it was used primarily in the production of tangible personal property for wholesale, retail sale, or lease by means of printing. That exemption is now back in action.
It is important to note that if you sell to customers in graphic arts that you start collecting exemption certificates (ST-587) and refrain from charging sales tax on those invoices if a certificate is provided and valid.
Keep in mind, if you receive exemption certificates from your customers, it is your responsibility to verify that their IBT number is valid. To verify a registered business, use this link to Illinois’ website and go to the “Businesses” tab: www.MyTaxIllinois.gov
If you have any questions, please feel free to contact Kelly Switt, Bill Sebastiano, or Ashley Barak at 847-956-1040.
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