Sales and Use Tax Changes

              This bulletin identifies several
changes recently enacted by the
Illinois General Assembly.
Tax Exemptions Repealed
Effective July 1, 2003, several ex-emptions
have been repealed. These
exemptions are listed below.
Pollution control facilities
Graphic arts machinery and
equipment
Oil field exploration, drilling, and
production equipment
Coal exploration, mining,
offhighway hauling, processing,
maintenance, and reclamation
equipment
Distillation machinery and equip-ment
Aggregate exploration, mining,
offhighway hauling, processing
maintenance, and reclamation
equipment
Machines and parts for machines
used in commercial, coin-oper-ated
amusement and vending
businesses if a use or occupation
tax is paid on the gross receipts
from these machines
How do I report and pay the
tax?
Sales of these items are no longer
allowable deductions on Line 2 of your
Form ST-1, Sales and Use Tax Re-turn.
Report your total sales on Line 1
of your Form ST-1, Sales and Use Tax
Return and calculate the tax as ex-plained
in the Form ST-1 instructions.
Sales and Use Tax Changes
FY 2004-04
July 2003
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To:
All Retailers and Servicepersons
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
“Illinois Tax Fax,” our
fax-on-demand service, at:
217 785-3400
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
250,000 copies - 6/03 - P.O. Number 2031343
Manufacturer’s Purchase
Credit (MPC) Repealed
No MPC will be earned on purchases
of manufacturing machinery and
equipment or graphic arts machinery
and equipment made after June 30,
2003. In addition, all unused MPC
earned for purchases made through
June 30, 2003, must be used before
October 1, 2003.
How does this change affect
purchasers of qualifying
production-related tangible
personal property?
Purchasers cannot use MPC on or
after October 1, 2003.
Purchasers still must file Form ST-16,
Annual Report of Manufacturer’s
Purchase Credit Earned, and Form
ST-17, Annual Report of
Manufacturer’s Purchase Credit Used
on or before June 30, 2004. No origi-nal
or amended reports will be ac-cepted
after June 30, 2004.
How does this change affect
retailers of qualifying
production-related tangible
personal property?
After October 20, 2003, we will disal-low
any MPC reported on either an
original or amended return, regardless
of when that MPC was earned. This
includes both the MPC that you re-ceive
from your customers or that you
use to satisfy your own use tax liability.