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
Illinois Legislature passes credit for marketplace sellers for double collected tax
By Jonathan Feldman, Jeremy Gove & Chris Lee on
Posted in Digital Economy, Marketplace
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
By Nikki Dobay, Breen Schiller & Jeremy Gove on
Posted in Policy and Legislation, Tax Reform
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…
Illinois’ Independent Tax Tribunal Decision in Pepsico
By Nikki Dobay & Breen Schiller on
Posted in Podcast
In this episode of the SALT Shaker Podcast, Partners Nikki Dobay and Breen Schiller are joined by Keith Staats, Executive Director of the Illinois Chamber Tax Institute, an operating division of the Illinois Chamber of Commerce. During their conversation, they discuss Keith’s work, as well as the recent decision of the Illinois Independent Tax…
Illinois Governor Appoints New Tax Tribunal Judge
By Breen Schiller & Dennis Jansen on
Posted in In the News
On April 27, Illinois Governor J.B. Pritzker appointed retired Circuit Court Judge Edward Washington II to the Illinois Independent Tax Tribunal. The appointment was for a vacant position, so it appears that Judges Brian F. Barov and James M. Conway will continue in their roles.
Edward Washington II was a judge of the 5th Subcircuit…
Illinois Tax Tribunal denies 80/20 exclusion
By Breen Schiller & Chris Lee on
Posted in Income Tax, Noteworthy Cases
The Illinois Tax Tribunal issued an order denying PepsiCo Inc. and Affiliates’ (“PepsiCo”) motion for summary judgment and found that PepsiCo’s subsidiary, Frito-Lay North America, Inc. (“FLNA”), was not an excluded 80/20 company and must be include in the PepsiCo Illinois unitary group corporate income tax return.[1] As originally filed, PepsiCo excluded FNLA from…
“Nikki, there’s always tax drama in Illinois!”
By Nikki Dobay & Breen Schiller on
Posted in Podcast
In this episode of the SALT Shaker Podcast policy series, Carol Portman, President of the Taxpayers’ Federation of Illinois, joins Breen Schiller, Partner in the Chicago office of Eversheds Sutherland, and host Nikki Dobay for an insightful discussion about the 2021 Illinois legislative session.
They discuss the Legislature’s COVID-19 procedures, whether a handful…
Quick Update: New York, Illinois and California
By Chris Lee on
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a New York letter ruling concerning sales tax treatment of a database service, a New York Tax Appeals Tribunal decision concerning residency for individual income tax, an Illinois letter ruling addressing sourcing of sales for sales tax and a California Office of Tax…
Won’t You Stay With Me? Illinois Department of Revenue Determines Sales Stay Sourced to Product Managers
By Breen Schiller & Chelsea Marmor on
Posted in In the News
The Illinois Department of Revenue issued a private letter ruling determining that for purposes of the Retailers’ Occupation Tax (ROT) and the Services Occupation Tax (SOT), a taxpayer that procured marketing materials on behalf of its clients properly sourced these sales to the location of the product manager, the employee responsible for procuring the materials.…
Illinois Department of Revenue issues FAQs on marketplace sales
By Jonathan Feldman, Chris Lee & Charles Capouet on
Posted in Digital Economy, Marketplace
The Illinois Department of Revenue issued responses to Frequently Asked Questions regarding marketplace facilitators, marketplace sellers, and remote retailers. The Department considers food ordering and delivery services to be marketplace facilitators if they: (1) list or advertise food or drink for sale by a marketplace seller in a marketplace; and (2) either directly or indirectly,…