Illinois Department of Revenue
 
 
Local Government
 
 
 
 
 

Photoprocessing

 
 

Note: Public Act 92-0600 repealed the Photoprocessing distribution for local governments. As of June 30, 2002, disbursements for Photoprocessing are no longer in effect.

What is the history of photoprocessing?

Beginning September 1, 1988, retail sales of qualifying graphic arts machinery and equipment used primarily in graphic arts production became exempt from sales tax. In combination with extending this exemption, many photoprocessing products previously subject to Service Occupation Tax (SOT) became subject to Retailers Occupation Tax (ROT). In order to make up for the revenue lost from sales of photoprocessing machinery and equipment, the law provides for an additional distribution to municipal and county governments.

How is photoprocessing revenue calculated and distributed?

Each month 0.4 percent of the total state portion of sales tax collected is set aside to be distributed to municipal and county governments. This distribution is subject to appropriation of funds by the state legislature. The amount that each municipal and county government receives is based on its population in proportion to the total state population. The population figures are determined on the basis of the latest census conducted by the United States Bureau of the Census and certified by the Office of the Secretary of State.

How is the tax on retail photoprocessing sales reported and distributed?

Film developing and retail sales of other photoprocessing products are subject to sales tax on the selling price. This tax is reported by the retailer on Form ST-1, Sales and Use Tax and E911 Surcharge Return. The local share of the tax is returned to the local government in which the sale took place based on the same methods used in distributing any other sales tax.

Why do you receive a photoprocessing distribution when no one in your community processes film?

The funds that are set aside for distribution based on the 0.4 percent formula are required to be shared by all municipal and county governments. Your share of these funds will come to you as a separate warrant labeled photoprocessing. These funds are in addition to any sales tax revenues you may be entitled to from film developing or sales of other photoprocessing products within your community.
 
 
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