Illinois local sales tax liability imposed at the location where purchase orders are accepted

September 2012


In a 2-1 decision, an Illinois Appellate Court judicial panel found that, consistent with the plain language of state statutory law and regulatory guidance, local sales tax situs was fixed at the locality where a taxpayer maintained its sales office and accepted purchase orders. The court acknowledged that the taxpayer intentionally structured its sales location and procedures to minimize its tax liability. However, there was nothing in Illinois statutes or regulations that supported a contrary outcome. [Hartney Fuel Oil Co. v. Hamer, Appeal Nos. 3-11-0144 and 3-11-0151, Ill. App. Ct (9/17/12)]

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