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A Question of Fact: Illinois Tax Tribunal Denies Summary Judgment Motion in Unitary Business Case

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In an order released in July 2021, the Illinois Tax Tribunal denied a taxpayer’s motion for summary judgment in a “unitary business” case, finding that there were disputed issues of fact as to whether the taxpayer was engaged in a unitary business with a company that the taxpayer sold.  See Christopher v. Illinois Dep’t of Rev., 19 TT 131 (Ill. Tax Trib. Nov. 24, 2020, released July 2021).  The taxpayer, T. Christopher Holding Company (“Holding Company”), claimed that it was not unitary with Vogue International, LLC (“Operating Company”), and thus its gain from the sale of Operating Company could not be included in Holding Company’s Illinois business income under U.S. constitutional principles and Illinois law.  However, the Tribunal found that the Illinois Department of Revenue (“Department”) had presented sufficient evidence to establish a disputed issue of material fact that rendered summary judgment on this issue inappropriate.

Connecticut’s Digital Advertising Tax Continues to Move Forward

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Connecticut legislative leaders recently announced support for a digital advertising tax (“Connecticut Digital Advertising Tax”) proposed by the Connecticut Joint Committee on Finance, Revenue and Bonding (the “Finance Committee”).  Connecticut joins Maryland, Massachusetts, New York, and Texas, among others, as states with concrete digital advertising tax proposals on the table (and in Maryland’s case, an enacted law).

Maryland Amends its Digital Advertising Gross Revenues Tax, Creating Additional Constitutional Infirmities

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On April 12, 2021, Maryland legislators passed Senate Bill 787, which proposed several significant amendments to Maryland’s digital ad tax (see Maryland Passes Digital Advertising Gross Revenues Tax After Overriding Veto). Governor Larry Hogan declined to take action with respect to signing or vetoing Senate Bill 787. As a result, the legislation automatically became law, effective May 12, 2021. Most notably, Senate Bill 787 delays the effective date of the digital advertising tax to tax…

The City of Chicago Issues Nexus Guidance and Safe Harbor In Light of Wayfair and Illinois State Level “Economic Nexus” Standards

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The City of Chicago recently issued nexus guidance and a limited safe harbor for City tax purposes in light of the U.S. Supreme Court’s pivotal South Dakota v. Wayfair ruling and the State of Illinois’ statutory economic nexus standards. True to form, the City implemented its new nexus standards by executive action via publication of a “nexus and safe harbor” “information bulletin” on its website (available on the City’s website, here), as opposed to the Chicago City Council more formally (and more appropriately) adopting a new ordinance.

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