|
September 14, 2018
State and Local Tax this week
Illinois General Assembly
The General Assembly returns to Springfield for the fall veto session on November 13. The House and Senate are scheduled to be in session November 13 through 15 and November 27 through 29.
No new tax-related legislation was filed this week. I suspect it will be quiet on the legislative front through the election, with the exception of the occasional bill filed for political purposes.
Rulemaking
The September 14 edition of the
Illinois Register
did not contain any new rulemakings by t
he Illinois Department of Revenue or the Department of Commerce and Economic Opportunity.
The Department of Revenue filed emergency rules, effective September 11, 2018, to add new rule
150.803, entitled "Wayfair nexus - nexus without physical presence."
Link to Notice of Emergency Amendments. The emergency rules were effective upon filing with the Secretary of State even though they will not be published in the Illinois for a couple of more weeks. IDOR General Counsel Mark Dyckman provided a copy of the rules so I could share them with the Tax Institute.
The emergency rules provide that effective October 1, 2018, the Act requires remote sellers to register with the Department and collect and remit Use Tax if they meet the specific selling thresholds.
The emergency regulations provide detail about how to calculate the number of separate transactions or the amount of gross receipts in determining whether an out-of-state retailer reaches the statutory 200 or more separate transactions or receipts from sales of $100,000 or more. Notably, the term "separate transactions" is defined to mean "sales transactions which are documented on separate invoices, regardless of the manner in which the personal property is delivered to the purchaser.
As you know, Mark is scheduled to be the featured speaker for the first hour of Tax Institute quarterly meeting next Wednesday afternoon. Mark promises to address any questions any of the members have a out the emergency rulemaking and the Department's implementation of Wayfair. If you would prefer not to ask any questions yourself, feel free to forward the questions to me and I will be happy to ask Mark on your behalf.
Court cases
No tax-related decisions were issued by the Illinois appellate or supreme courts this week.
Publications
The Illinois Department of Revenue issued
Informational Bulletin FY 2019-05 "Use Tax Guidance for Remote Sellers. The informational bulletin is the Department's explanation of the provisions of the new nexus law enacted as a portion of P.A. 100-587 and the Department's new emergency rules, 150.803, discussed above.
Please send me links to your publications for inclusion in the newsletter. The Illinois Chamber also maintains the
Chamber Dispatch Blog on our website. This blog is is open to the general public. We are happy to receive short submissions from members for inclusion on the blog. We can also include short summaries with links to articles or publications. Contact me for additional details on how to participate.
Tax Tribunal
No new decisions were issued by the Tribunal this week. One new protest may be of interest.
At issue in
Vertex Wireless LLC v. Illinois Department of Revenue is the scope of income tax deduction for personal services or a reasonable allowance for compensation paid to partners of partnerships for services rendered by the partners to the partnership. Vertex Wireless is represented by David Hughes and Samantha Breslow of Tax Institute member law firm Horwood Marcus & Berk.
As explained in the petition, the partners are not passive investors in a partnership. "The members are professional practitioners who leverage more than 150 years in combined experience in the mobility and wireless solutions industry and their extensive professional networks to engage and develop customers.
|
