On September 28, 2026, the Illinois Department of Revenue (the “Department”) released draft proposed rules (the “Draft Proposed Rules”) implementing the Digital Asset Tax Act (the “Act”), which was enacted as part of Senate Bill 3019. Notably, the Draft Proposed Rules have not yet entered Illinois’ formal rulemaking process and the Department is accepting comments through October 30, 2026. The Act imposes a 0.2% tax on the value of a digital asset involved in a…
In the early hours of June 1st, the Illinois legislature passed Senate Bill 3019 (“SB3019”) as part of its 2027 fiscal year budget bill, with major implications for online advertisers and social media companies. The bill is expected to officially become law without modification. Key changes to come for Illinois taxpayers include: Targeted Advertising Services Tax Beginning January 1, 2027, a 10% gross receipts tax will be imposed on providers of “targeted advertising services,” echoing…
In Matter of Charter Communications, Inc. v New York State Tax Appeals Tribunal, CV-24-0971 the New York Supreme Court, Appellate Division, Third Department (New York’s intermediate appellate court, the “Court”) recently held that Charter Communications, Inc. and its combined affiliates were not eligible for the reduced qualified emerging technology company (“QETC”) corporate franchise tax rate. The Court agreed that each member of a combined group must independently meet the QETC definition for the group to…
The City of Chicago begins its 2026 fiscal year with a new budget containing several key tax changes (linked here), headlined by a new “Social Media Amusement Tax” (or “SMAT”). Here’s what you need to know to stay on top of your 2026 Chicago tax compliance obligations: The Chicago Social Media Amusement Tax A handful of U.S. jurisdictions have introduced the concept of a social media tax (e.g., California, Hawaii, Maryland, Minnesota, Washington, etc.) in…