Colorcraft Corp. v. Department of Revenue

Colorcraft Corporation, the plaintiff taxpayer, filed exemption certificates claiming a use tax exemption for 31.25% of the cost of two pieces of equipment for use in its photofinishing business pursuant to section 3 of the Use Tax Act (Ill. Rev. Stat. 1983, ch. 120, par. 439.3). A subsequent audit by the defendant, the Department of Revenue (Department), resulted in the disallowance of the claimed exemptions and the issuance of a notice to Colorcraft of tax liability for the alleged use tax deficiency.

Colorcraft filed a protest with the Department and requested a hearing. After the hearing,…