The Illinois Court of Appeals held that an energy company’s book-out transactions, which do not involve the physical transfer of fuel, are taxable sales under the Cook County fuel tax ordinance because they involve the transfer of an ownership interest as to the fuel. The company enters into book-out transactions to settle forward contracts (i.e.
Illinois Department of Revenue releases clarifying guidance on tax treatment of cryptocurrency
On October 31, 2022, the Illinois Department of Revenue released new guidance providing clarity on the treatment of cryptocurrency. The Department’s guidance provides that Illinois conforms to the federal tax treatment of treating cryptocurrency as property. The new guidance also states that, for purposes of the applicability of Public Law 86-272 to an out-of-state company
Keep it close and approximate: New rules for market sourcing
Approximately 34 states require market sourcing to source sales of other than tangible personal property. Many states adopted market-sourcing rules in recent years and are only now beginning to finalize regulations regarding their implementation. A number of states have also adopted market-sourcing regulations attempting to provide additional clarity through more detailed rules.
In this installment
Illinois’ 2022 legislative session catch up!
In this episode of the SALT Shaker Podcast policy series, Eversheds Sutherland Partner and host Nikki Dobay is joined again by Carol Portman, President of the Taxpayers’ Federation of Illinois, for a review of the 2022 Illinois legislative session, which adjourned earlier this year. (You can catch up on their discussion of the 2021
The quadcast: An East/West/Middle comparative look at protesting an assessment
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove rolls out a new discussion format—East/West/Middle. Joining Jeremy for this discussion are Partners Nikki Dobay and Breen Schiller, and Counsel Michael Hilkin, and the four discuss the similarities and differences of protesting an assessment in New York (East),
Illinois rules bundled hardware and software subscription is subject to Service Occupation Tax
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