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Synopsis As Introduced Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the manufacturing and assembling machinery and equipment exemption also includes production related tangible personal property. Defines "production related tangible personal property" as all tangible personal property used or consumed by the purchaser in a manufacturing facility in which a manufacturing process takes place, including tangible personal property purchased for incorporation into real estate within a manufacturing facility and including, but not limited to, tangible personal property used or consumed in activities such as research and development, preproduction material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes. Provides that "production related tangible personal property" does not include (i) tangible personal property used, within or without a manufacturing facility, in sales, purchasing, accounting, fiscal management, marketing, personnel recruitment or selection, or landscaping or (ii) tangible personal property required to be titled or registered with a department, agency, or unit of federal, state, or local government. Effective immediately.
House Committee Amendment No. 1 Deletes everything after the enacting clause. In the Use Tax Act, provides that the manufacturing and assembly exemption shall be awarded to the taxpayer in the form of a credit memorandum. Provides that the Department of Revenue shall submit a report to the General Assembly containing certain information concerning credit memorandums awarded for production related tangible personal property. Amends the Retailers' Occupation Tax Act. Deletes references to an exemption for production related tangible personal property. Effective immediately.
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