Monday, August 3, 2009
The extensions of the Graphic Arts Machinery and Equipment Exemption, Manufacturers Purchase Credit and Investment Tax Credit (SB1691) have been signed into law by Illinois Governor Pat Quinn.
Be aware that the original laws had a sunset date of July 29, 2009. From what we can tell, the extensions were signed with an effective date of August 3, 2009. That would mean that we did NOT have an exemption from sales tax for four days....July 30, July 31, August 1 and August 2.
If you made any purchases on those dates or used MPC, you may have a sales tax exposure. Watch this space for updated information
Friday, July 31, 2009 -- 5:20PM EXEMPTION IS SAVED! A recent call from the Governor's office has confirmed that Gov. Quinn signed SB1691 at 4:30PM. More information about the legislation will be on our website Monday.
Friday, July 31, 2009 - 4:00PM CDT - IMMINENT SUCCESS - Our friends at the IL State Chamber of Commerce report that the Governor's office has stated that SB1691 will be signed today, thus extending the Graphic Arts Machinery and Equipment Exemption to August 31, 2014. We'll let you know when this becomes an actuality. (Thank you to all who wrote or calledGov. Quinn about this bill!).
Friday, July 31, 2009 - 2:25PM CDT - nothing to report....
Friday, July 31, 2009 - Noon CDT -- still no new news...Legislative Review Team is aware of the sunset deadline; Governor is in Chicago signing legislation re: mortgage fraud.
Friday, July 31, 2009 - 8AMCDT - no news from the Governor's office yet...
Thursday, July 30, 2009 6:25PM CDT--No change to report since our noontime message today. We are in telephone contact with the Governor's office which is aware of the sunset of the exemption tomorrow. We'll keep you as up to date as possible.
Thursday, 12:25PM CDT July 30, 2009:---It's down to the wire and we're biting our fingernails here at PII. The Governor has not yet signed SB1691 and the current exemption (and MPC) expires tomorrow. We have repeated calls into the Governor's office and await updated informaion. This bill passed both the Illinois House and Illinois Senate unanimously and was sent to Gov. Quinn for his signature on June 29, 2009. We'll update you as we receive new information. In the meantime, if you haven't contacted the Governor's office yet...DO SO NOW!
Ccontact Illinois Governor Pat Quinn NOW and ask him to sign SB1691 into law. Click here to go to the Governor's contact page to send an email message or call 217-782-0244.
Here's the background:
Illinois' graphic arts exemption from state sales tax on machinery and equipment purchases, including repair and replacement parts, is set to statutorily expire on July 30, 2009. That means that our industry would begin paying sales tax on July 31 for any purchases of graphic arts-related production equipment, including printing presses, cutters, folders, plates, blankets, rollers, prepress computer systems and more.
What's at stake? Let's say you are located in Elk Grove Village and purchase a press for $250,000 on August 1. Right now, you wouldn't pay sales tax on that purchase. If SB1691 does not become law, you will pay sales tax. Elk Grove Village's sales tax rate at July 1, 2009 was 10%. Without the Graphic Arts Machinery and Equipment Exemption, you'll pay $25,000 in sales tax on your purchase. Can you afford the additional $25,000?
Senate Bill 1691 was passed by the Illinois House and Senate on May 28, 2009 and sent to the Govenor for his signature on June 29. The Governor has not yet signed the legislation.
SB1691 will extend the Graphic Arts Machinery and Equipment Exemption to August 30, 2014 and will also extend the Manufacturers Purchase Credit to August 30, 2014. In addition, the definition of "graphic arts production" will change so that the exemption will only apply to tangible personal property produced for wholesale or retail sale.
I urge you to contact Governor Pat Quinn's office to ask him to sign SB1691. Again, contact the Governor's office at: http://www.illinois.gov/gov/contactthegovernor.cfm.
Your message to the Governor may include the facts that the graphic arts industry in Illinois provides direct employment for over 70,000 Illinois citizens in the state and generates over $12 billion in sales volume every year.
And especially during these difficult economic times, it does not make economic sense to eliminate an exemption that exists in the other 49 states, thus placing Illinois' printers at a competitive disadvantage.
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