Sales tax exemption for manufacturers on governors desk

Manufacturers and other companies statewide Friday were being urged to delay buying any new equipment until a state sales tax exemption is extended.

Senate Bill 1691, which includes extending the exemption to 2014, was sent to Gov. Pat Quinn on Wednesday. The tax exemption on machinery and equipment purchases expired Thursday.

The exemption is for all Illinois companies that purchase equipment for their operations within the state and not for facilities anywhere else. Eliminating such sales tax has saved companies tens of millions of dollars annually, said Jim Nelson, spokesman for Oak Brook-based Illinois Manufacturers' Association.

"The exemption allows companies to reinvest that money by expanding their companies, buying better equipment or hiring more workers," Nelson said.

The Illinois Press Association also urged its members statewide to delay buying anything for at least a month.

"The IPA has no reason to believe that Governor Quinn will not sign the bill," IPA Government Relations Director Beth Bennett wrote in a letter to members on Friday. "Until then, however, all machinery and equipment purchases are subject to state sales tax."

If Quinn doesn't sign the bill, the tax exemption would disappear. Quinn has 60 days to sign the bill.

"We are reviewing the bill," said Quinn's spokeswoman Ashley Cross.