Section Newsletters

Articles From David J. Kupiec

Illinois Appellate Court Holds Governmental Sale Tax Exemption Does Not Apply to Taxpayer’s Sales to Managed Care Organizations By David J. Kupiec, JD,CPA & Natalie Martin, J.D. State and Local Taxation, February 2024 A summary and analysis of the appellate court decision in Midwest Medical Equipment Solutions, Inc. v. Illinois Department Of Revenue and Illinois Independent Tax Tribunal.
U.S. Supreme Court Issues Unclaimed Property Opinion Escheating Intangible Property to the State of Purchase, Not the State of Incorporation: Delaware v. Pennsylvania By David J. Kupiec, JD,CPA & Natalie M. Martin, J.D. State and Local Taxation, May 2023 On February 28, 2023, the United State Supreme Court issued a 9-0 opinion in Delaware v. Pennsylvania, et al., holding that certain intangible instruments should generally escheat to the state of purchase under section 2503 of the Disposition of Abandoned Money Orders and Traveler’s Check Act.
Illinois Appellate Court Issues Opinion Concerning Chicago Personal Property Lease Transaction Tax: RN Acquisition, LLC v. PACCAR Leasing Co. By David J. Kupiec, JD,CPA & Natalie M. Martin, J.D. State and Local Taxation, February 2023 In November 2022, the appellate court issued an opinion in RN Acquisition, LLC v. PACCAR Leasing Co. affirming the circuit court's finding that PACCAR Leasing Company was not responsible for the tax in question under the terms of the lease contract at issue.
Illinois Appellate Court Holds Sale of Appliances Installed by Retailer Subject to Illinois Retailer Occupation Tax By David J. Kupiec, JD,CPA & Natalie Martin, J.D. State and Local Taxation, August 2020 A summary and analysis of Best Buy Stores, L.P. v. The Illinois Department of Revenue.
Illinois Supreme Court Affirms ‘Clearly Erroneous’ Standard of Review for Illinois Independent Tax Tribunal Matters By David J. Kupiec, JD,CPA & Natalie M. Martin, J.D. State and Local Taxation, February 2020 On November 21, 2019, the Illinois Supreme Court issued an opinion affirming in part and reversing in part the appellate court’s judgment in Horsehead Corp. v. Department of Revenue, et al.
Out of state internet retailers subject to state sales/use taxes in historic South Dakota v. Wayfair decision By Stanley R. Kaminski, David J. Kupiec, & Natalie M. Martin State and Local Taxation, July 2018 In South Dakota v. Wayfair, the U.S. Supreme Court rejected the physical presence test for state sales/use taxes, marking a historic change in state tax law.
Cook County Sweetened Beverage Tax legal challenges continue as retailers collect new tax By David J. Kupiec & Natalie M. Martin State and Local Taxation, August 2017 Cook County retailers started collecting the Sweetened Beverage Tax on August 2, 2017.
Legislative state tax update of the Illinois Income Tax Act and Retailers’ Occupation Tax Act By David J. Kupiec State and Local Taxation, July 2017 Illinois Public Act 100-0022 amends the Illinois Income Tax Act and Retailers’ Occupation Tax Act-- here's what you need to know.
Illinois Governor signs sales tax bill providing clarity for new cancer treatment By David J. Kupiec & Natalie M. Martin State and Local Taxation, September 2016 On August, 19, 2016, Governor Rauner signed Senate Bill 3047 (Public Act 99-0858), which provides that FDA classified medical devices that are used for cancer treatment pursuant to a prescription will be taxed at the reduced 1% rate of tax applied to medicines rather than the standard 6.25% sales tax rate.
City of Chicago extends effective date of lease tax ruling until January 1, 2016 due to cloud tax concerns By David J. Kupiec, Natalie M. Martin, & Evan W. Schanerberger State and Local Taxation, August 2015 On June 30, 2015, the City of Chicago issued a release titled “Personal Property Tax Ruling 12 Effective 7-1-2015,” which officially extended the effective date of Lease Tax Ruling #12 from September 1, 2015 to January 1, 2016.
United States Supreme Court holds that “similarly situated competitors” in a jurisdiction represent a comparison class and equivalent comparable state taxes to be considered in deciding discrimination By David J. Kupiec, Natalie M. Martin, & Evan W. Schanerberger State and Local Taxation, May 2015 A summary of the recent case of Alabama Department of Revenue et al. v. CSX Transportation, Inc.
United States Supreme Court holds that “similarly situated competitors” in a jurisdiction represent a comparison class and equivalent comparable state taxes to be considered in deciding discrimination By David J. Kupiec, Natalie M. Martin, & Evan W. Schanerberger Energy, Utilities, Telecommunications, and Transportation, May 2015 A summary of the recent case of Alabama Department of Revenue et al. v. CSX Transportation, Inc.
Chair’s departing thank you By David J. Kupiec State and Local Taxation, June 2014 A message from Outgoing Section Chair David Kupiec. 
Chair’s column: Welcome! 2013-2014 to be another period of state tax change By David J. Kupiec State and Local Taxation, July 2013 A message from Section Chair David Kupiec.
Who should consider using the new Illinois Tax Tribunal By David J. Kupiec & Natalie M. Martin State and Local Taxation, July 2013 Useful details that will assist practitioners in understanding the benefits and conditions of this new venue.
Illinois’ new independent Tax Tribunal—Implementation legislation enacted as July 1, 2013 start date approaches (Public Act 97-1129) By David J. Kupiec & Natalie M. Martin State and Local Taxation, December 2012 Public Act 97-1129 provides the much-needed tax tribunal operational framework, some of which is briefly described in this article.
Illinois state and local sales tax sourcing—Will the current long standing local sales tax sourcing test be changed in Illinois? By David J. Kupiec & Natalie M. Martin State and Local Taxation, November 2011 As of the drafting of this article, this sales tax sourcing issue remains the focus of pending Illinois legislation and litigation.
Illinois sales tax legislation enacted—Amends definition of “retailer maintaining a place of business in the state” By David J. Kupiec & Natalie M. Martin State and Local Taxation, July 2011 The law amends Section 2 of the Illinois Use Tax Act, 35 ILCS 105/2, by requiring all online retailers who contract with an “affiliate” in Illinois to collect sales tax on customer purchases beginning July 1, 2011.
2011 Illinois income tax increase—An overview of the provisions of Public Act 96-1496 (SB 2505) By David J. Kupiec & Natalie M. Martin State and Local Taxation, March 2011 A look at some of the new provisions, which took effect on January 13th of this year.
Illinois tax amnesty enacted—Interest and penalties abated or doubled By David J. Kupiec & Natalie M. Martin State and Local Taxation, September 2010 The amnesty program provides that, upon payment by a taxpayer of all taxes due to the State of Illinois for any taxable period ending after June 30, 2002 and prior to July 1, 2009, the Department shall abate and not seek to collect any interest or penalties that may be applicable and the Department shall not seek civil or criminal prosecution for any taxpayer for the period of time for which amnesty has been granted to the taxpayer.
Illinois Supreme Court holds Wal-Mart properly charged sales tax on shipping charges applied to customers’ Internet purchases of tangible personal property By David J. Kupiec & Natalie M. Martin State and Local Taxation, February 2010 On November 19, 2009, The Illinois Supreme Court issued an opinion holding that shipping charges for certain Internet purchases of tangible personal property are subject to the Illinois sales tax.
Illinois Supreme Court issues modified opinion holding electricity is “tangible personal property” for purposes of Section 201(e) of the Illinois Income Tax Act but imposes prospective application By David J. Kupiec & Natalie M. Martin State and Local Taxation, October 2009 At issue in this case is whether the Taxpayer’s 1995 and 1996 investments in property used for generating, transmitting and distributing electricity to customers in Illinois qualified for the .5 percent investment credit provided under Section 201(e) of the IITA.
Illinois Supreme Court holds electricity is “tangible personal property” for purposes of the Illinois Personal Property Tax Replacement Income Tax Investment Credit By David J. Kupiec & Natalie M. Martin Energy, Utilities, Telecommunications, and Transportation, April 2009 At issue in this case is whether the Taxpayer’s 1995 and 1996 investments in property used for generating, transmitting and distributing electricity to customers in Illinois qualified for the .5% investment credit provided under Section 201(e) of the Illinois Income Tax Act.
Illinois Supreme Court holds electricity is “tangible personal property” for purposes of the Illinois Personal Property Tax Replacement Income Tax Investment Credit By David J. Kupiec & Natalie M. Martin State and Local Taxation, March 2009 On February 20, 2009, the Illinois Supreme Court issued an Opinion holding that electricity is “tangible personal property” for purposes of the Illinois personal property tax replacement income tax investment credit.
Illinois Department of Revenue proposing numerous new and revised Illinois income tax regulations By David J. Kupiec & Natalie M. Martin State and Local Taxation, September 2008 The Illinois Department of Revenue is in the process of updating existing and drafting new income tax regulations primarily to address recently enacted income tax legislation, Public Acts 95-0233 (SB 1544) and 95-0707 (SB783).
United States Supreme Court vacates and remands MeadWestvaco and provides further clarification concerning determination of unitary assets By David J. Kupiec & Natalie M. Martin State and Local Taxation, May 2008 On April 15, 2008, the United States Supreme Court unanimously vacated and remanded MeadWestvaco Corporation v. Illinois Department of Revenue (U.S. Sup. Ct. No. 06-1413) back to the Illinois Appellate Court for determination as to whether MeadWestvaco Corporation (hereafter “Mead”) and its wholly owned business division, Lexis/Nexis (hereafter “Lexis”), were part of a unitary business.  
Illinois Appellate Court affirms Department of Revenue’s treatment of electricity for Investment Tax Credit purposes and limits Uniformity Clause application for credits By David J. Kupiec & Natalie M. Martin State and Local Taxation, February 2008 In Exelon Corporation v. Illinois Department of Revenue and Brian A. Hamer, No. 1-06-3388 (Ill. App.Ct., 1st Jud. Dist) (September 24, 2007), the Illinois Appellate Court affirmed the Circuit Court’s Summary Judgment Order, which affirmed the Illinois Department of Revenue’s (Department’s) Decision denying an electric utility company a Personal Property Tax Replacement Income Tax Investment Credit and denying that the Uniformity Clause of the Illinois Constitution was violated by the Department’s granting of such credit to gas companies and a combined gas and electric utility company.
Illinois Appellate Court affirms Department of Revenue’s business income and net proceeds positions By David J. Kupiec State and Local Taxation, June 2007 In Mead Corp. v. Illinois Department of Revenue, No. 1-03-1160 (Ill. App.Ct., 1st Jud. Dist), the Illinois Appellate Court held that for Illinois income tax purposes the gain from the sale of certain property at issue in that case was business income apportionable to Illinois.
2006 Illinois Income and Sales Tax legislative update and veto session tax projections By David J. Kupiec & J. Thomas Johnson State and Local Taxation, November 2006 Provided below is a brief summary of certain Illinois income and sales tax legislation enacted during the 2006 legislative session:
Illinois legislation corrects income tax bonus Depreciation Modifications By David J. Kupiec & Natalie M. Martin State and Local Taxation, June 2006 On May 19, 2006, Governor Blagojevich signed House Bill 2706 (Public Act 94-0776) - a Bill put forth as a Department of Revenue technical correction to primarily address various issues concerning the Illinois income tax bonus depreciation provisions.

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