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Emergency sales tax rules inspired by a Putnam County case

Posted by wlpo on January 22, 2014

If a business wants to take advantage of a low sales tax rate it will have to put some of its operations in that town.  New emergency sales tax rules filed Wednesday by the Illinois Department of Revenue clarify that sales taxes must be paid in the town where the bulk of the business happens.

The rules came after the Illinois Supreme Court ruled in November that the Village of Mark shouldn’t be receiving the sales taxes from Hartney Fuel Oil because the company was really doing business in Forest View, though what was happening was legal.

IDR says businesses that artificially sourced sales to a town where that not really selling anything takes money away from fire and police departments that are providing services to the real location.

The emergency rules will last for 150 days.  The department is working on permanent rules.

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