Illinois Department of Revenue Issues Emergency Sales Tax Allocation Rules - AZTV7/Cable 13, Me-TV 7.2, HSN 7.3, Phoenix-Prescott, AZ

Illinois Department of Revenue Issues Emergency Sales Tax Allocation Rules

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact


DALLAS, Jan. 24, 2014 /PRNewswire/ -- Following the Illinois Supreme Court's ("the Court") decision in Hartney Fuel Oil Co. v. Hamer ("Hartney"), the Illinois Department of Revenue ("the Department") issued emergency administrative rules on January 22, 2014, for local sales tax allocation. Prior to the Court's decision, retailers had sourced sales to municipalities with lower local taxes or entered into agreements with municipalities to refund much of the local taxes collected. However, the retailers had no significant activities in the locality except for the accepting of purchase orders. The municipalities where the majority of the retailers' activities occurred were unable to collect the local sales tax even though they provided services such as fire and police protection to the retailers. The Court in Hartney invalidated the rule for determining the location of a retailer based on the location where the order was accepted for local sales tax. The Court determined that a more fact-intensive test was required to determine the situs for the sale.

Under the emergency rules, the test to determine the situs of sales includes:

  • Does the location house company executives with the authority to negotiate and finalize sales transactions?
  • Is this the location where purchase orders are accepted or other contracting actions that bind the seller to the sale are completed?
  • Is the inventory of the goods to be sold housed in this location?

The Department's emergency rules are in effect for 150 days unless action is taken to otherwise suspend them. The Department also proposed permanent regulations to replace the emergency rules. Both the emergency and proposed permanent rules are available at

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 9,000 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at


Available Topic Expert: For information on the listed expert, click appropriate link.
Jim Kranjc


Jim Kranjc

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and AZ-TV. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.