Illinois – Proposed Rules Local Sourcing of Sales and Use Tax (Hartney Decision)

SALT Report 3267 – The state of Illinois has proposed emergency rules in order to respond to the recent ruling in Hartney Fuel Oil Company v. Hamer, 2013 IL 115130 (November 21, 2013) (SR 3220).  The rules address the issues of local tax sourcing and the determination of where the order took place.  According to the proposed rules (they all generally read the same but apply to different local taxes) various factors are considered in determining where the order took place and are broken down in four categories beginning on Page 7 of the proposed rules Section (d) Application of Composite of Selling Activities Test to Multi-Jurisdictional Intrastate Retailers (Example Rule/220.115)  1.)    In general,  2.)    Primary factors, 3.)    Secondary factors, 4.)    Principles underlying determination of seller’s location

For Further Information:

Proposed Rules Status

Proposed Rules and Details on Hartney Decision

Letter to Joint Committee on Administrative Rules (January 22, 2014)