SALT Report 1470 – The Illinois Department of Revenue issued a general information letter regarding sales and use tax exemptions for printers. Generally, it is presumed that items such as paper and ink when purchased by a customer who is in the business of graphic arts production are being purchased for resale and qualify for the resale exemption.
86 Ill. Adm. Code 130.1405 states that if a retailer buys tangible personal property from a vendor that they will then resell to purchasers, they may purchase these items tax-free if they provide the seller with a properly executed Certificate of Resale. In some cases, a sale may be made tax-free if the purchaser has an active registration number or resale number from the Department, provides that number to the seller, and certifies that the purchase is nontaxable because it is a sale for resale.
However, failure to provide an active registration number or resale number and proper certification to the seller that a sale is for resale creates a presumption that the sale is not for resale. This presumption may be rebutted by other evidence that all of the seller’s sales are sales for resale, or that a particular sale is a sale for resale.
Another type of exemption from sales tax that may be available to purchasers of printing paper is the Newsprint and Ink exemption. 86 Ill. Adm. Code 130.2105(b)(2) provides an exemption for purchases of paper and ink when used to print magazines or newspapers. Purchasers of newsprint and ink must certify that these purchases are exempt under the Newsprint and Ink exemption because they will be physically incorporated into newspapers or magazines.
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