In a private letter ruling, the Illinois Department of Revenue ruled that an out-of-state taxpayer that provided software subscriptions and related hardware for one bundled price was subject to the Service Occupation Tax, not the Retailers’ Occupation Tax, Use Tax, or Service Use Tax. The customer owns the hardware, but the taxpayer retains ownership
Illinois’ marketplace facilitator law – insights and analysis
Recent developments for Illinois’ marketplace facilitator tax law.
The latest
- October 1 – The Illinois Department of Revenue releases Sales and Use Tax Form CRT-63 “Sales Through Marketplace Facilitator Certificate.” (PDF). This certificate, which must be renewed annually, must be provided by marketplace facilitators to marketplace sellers. The certificate must be maintained with
Illinois Department of Revenue determines try-before-you-buy subscription service not taxable
The Illinois Department of Revenue recently released General Information Letter ST-21-0025-GIL, providing that an e-commerce retailer’s provision of tangible personal property to its subscribers for sampling prior to deciding whether to buy was not a taxable transaction, while an eventual purchase of the property was taxable. The taxpayer, based outside of Illinois, operates an
It’s alive: the Illinois franchise tax and its impact on M&A
In this installment of A Pinch of SALT for Tax Notes State, Eversheds Sutherland attorneys Breen Schiller, Eric Tresh and Jeremy Gove explore the Illinois franchise tax and recommend that taxpayers reacquaint themselves with the mechanics of the tax to understand the potential pitfalls of various corporate transactions.
Illinois amends unclaimed property law to include cryptocurrency
Effective August 6, 2021, Illinois amended its unclaimed property law to include cryptocurrency. SB 338, Public Act 102-0288, was approved by the Governor and became law the same day. Under the unclaimed property law, “virtual currency” is presumed unclaimed after 5 years of no indication of interest by the apparent property owner. The new
Illinois issues guidance on foreign dividend reporting changes
On June 24, the Illinois Department of Revenue released Informational Bulletin FY 2021-27 concerning foreign dividend reporting changes for corporate filers that take effect for tax years ending on or after June 30. The guidance summarizes changes implemented by the Illinois FY 2022 budget legislation, S.B. 2017, which was signed by Governor J.B.
Illinois Department of Revenue finds that the occasional sales exemption does not apply to marketplace sales
In letter ruling ST 21-0003, the Illinois Department of Revenue considered sales made by a nonprofit organization that previously qualified for the isolated or occasional sale exemption to the Retailers’ Occupation Tax. The Organization requested guidance concerning whether the exemption would apply if it made sales through a marketplace facilitator. The Department responded that
Illinois determines that web-based fleet management service is not subject to sales and use tax
The Illinois Department of Revenue Issued letter ruling ST 21-0001, addressing the retailer’s occupation tax and use tax treatment of a company’s fleet management service. The company provided a web-based management service for the administration, management, and record-keeping of motor vehicle fleets. The company used a Software as a Service (SaaS) model that allows
Illinois Legislature passes credit for marketplace sellers for double collected tax
On May 30, 2021, the Illinois Legislature passed S.B. 2066, which creates an exemption and retroactive credit for marketplace sellers for transactions in 2020 where tax was paid by the marketplace seller and the marketplace facilitator. Previously, Illinois’s marketplace law imposed a use tax (UT) obligation on a marketplace facilitator on all taxable sales
Illinois General Assembly passes $42 billion budget with several key tax provisions
On Memorial Day, and stretching into the early hours of June 1, the Illinois Legislature approved the state’s $42 billion budget for fiscal year 2022. It is anticipated that the budget’s tax provisions are expected to generate more than $600 million in additional revenue by addressing what governor J.B. Pritzker and others in the General