SALT Report 3716 – In an opinion filed on November 21, 2013 the Illinois Supreme Court addressed the ever complex issues of situs, legislative intent and administrative regulatory interpretations. Tax on business of selling defined. In Hartney Fuel Oil Co v. Hamer, the Illinois Supreme Court has defined the “tax on the business of selling under the Retailer’s Occupation Tax Act, to be a tax on the occupation of retail selling and not sales themselves…thus the location of the business of selling inside or outside the state controls, and not the location of transfer of title.”
In this case the Illinois Supreme Court decided in favor of Hartney Fuel Oil since sales of fuel were deemed to have taken place at the location of the business and outside the local jurisdictions seeking to impose a tax on the sale itself.
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