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On June 14, 2019, an Illinois Appellate Court held that a taxpayer’s subsidiaries are financial organizations that were excluded from the taxpayer’s Illinois combined return. During 2006, 2007 and 2008, Illinois excluded from a combined return those affiliates that apply a different apportionment method. (Note that, for taxable years ending on or after December 31,…

On May 22, 2019, the Illinois Appellate Court held that the late filing of a boat tour business’ Amusement Tax protest was excusable. The Cook County Department of Revenue had violated the taxpayer’s procedural due process rights by “affirmatively misleading” it on the proper filing deadline. Cook County law requires that taxpayers protest assessments within…

On September 26, 2018, the Illinois Department of Revenue issued a Private Letter Ruling confirming that certain electronic signatures satisfied the first prong of the software license sales tax exemption test. In Illinois, a license of software is not a taxable retail sale if a five-part test is satisfied. The first prong asks whether the…

On May 24, 2018, the Circuit Court of Cook County upheld the City of Chicago’s imposition of its amusement tax on streaming services.

  • On June 9, 2015, the Chicago Department of Finance issued a ruling indicating that electronically delivered amusements are subject to the amusement tax.
  • The circuit court upheld the tax against arguments that

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To raise revenue and tackle health concerns, a number of localities have imposed sugar-sweetened beverage (SSB) taxes. However, localities may have limited guidance on how these taxes are administered. Read this Bloomberg BNA article, by Eversheds Sutherland (US) attorneys Jonathan Feldman and Alla Raykin, which discusses:

  • Sugar-sweetened beverage tax background
  • Why are local SSB

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By Chelsea Marmor and Open Weaver Banks

The Appellate Court of Illinois reversed the Circuit Court’s $29.1 million Chicago Hotel Accommodations Tax (CHAT) award for Chicago holding that Defendant’s online facilitation and service fees were not subject to CHAT. CHAT applies to the “gross rental or leasing charge,” which was not defined during the years…

By Zack Atkins and Eric Coffill

The Illinois Supreme Court invalidated a Chicago ruling obligating suburban car rental companies to collect Chicago’s personal property lease transaction tax on rental transactions occurring outside the city on the grounds that it violated the Illinois Constitution. The ruling, which the City of Chicago Department of Revenue issued in…

By Nicole Boutros and Marc Simonetti

The Illinois Appellate Court held that a defendant out-of-state retailer was not liable under the state’s False Claims Act because it conducted a good faith inquiry into its use tax collection obligations for both its Internet and catalog sales.  The defendant had franchisees operating in Illinois and sold products…

By Charles Capouet and Eric Coffill

In Private Letter Ruling ST 15-0016-PLR, the Illinois Department of Revenue explained the application of the temporary storage exemption to the imposition of use tax on the in-state storage of equipment. Illinois’ temporary storage exemption applies where the property is acquired outside Illinois and, after a temporary stay in…

By Elizabeth Cha and Charlie Kearns

Effective for tax years beginning on or after January 5, 2016, the Illinois Department of Revenue adopted amendments to 86 Ill. Adm. Code Sec. 100.3380 that establish special rules for the inclusion in the Illinois sales factor of certain (1) income, gains and losses from hedging transactions; and (2)…