and equipment used directly by a manufacturer in the printing process and which
otherwise satisfies the requirements of GR-55, is exempt from tax. For purposes
of the manufacturing exemption, the printing process begins at the time a job
is received in either electronic form or in the form of drawings or copy and
includes all processes needed to convert the electronic form, drawing or copy
into printed material, including the following processes:
1. The initial typesetting and composition,
producing a paste-up, combining photographs with words, making page makeups and
taking pictures of them, making proofs and paper for editing, producing
negatives for plate-ready films, producing an image carrier installed on a
printing press, or equivalent prepress technology employed to produce an image
carrier, and the bindery/finishing stage; or
2. Using computers, scanners, proofers,
typesetters, photographic equipment, film processors, and direct-to-plate
equipment exclusively in performing any of the processes listed in (1) above.
Manufacturing printed material does not include using computers, scanners, and
the other equipment listed to design, write or compose an original item or
document to be printed.
B. "Typesetting" includes converting images
into standardized letter forms of a certain style which usually are hyphenated,
justified and indented automatically by means of machinery and equipment.
Typesetting machinery and equipment includes fonts, video display terminals,
tape and disc making equipment, computers and typesetters which are
interconnected to operate essentially as one machine.