Illinois – New Sales Tax Allocation Rules

SALT Report 3230 – The Illinois Department of Revenue issued new rules to comply with the “Supreme Court’s decision in Hartney Fuel Oil Co. v. Hammer (11/21/13), and provide Illinois businesses necessary guidance about how they should allocate the local sales taxes they collect from their customers.”  The new rules clarify that “sales taxes must be paid in the community where the bulk of business activities occur.”

Prior rules allowed retailers “to artificially source sales to municipalities where the business of selling was not occurring in a meaningful way.”

For Further Information:

New Sales Tax Allocation Rules Filed Today

Hartney Fuel Oil Co. v. Hamer, 2013

SALT Report 3716