Two Important Illinois Announcements
Two important announcements on the recent Illinois sales tax litigation that has ensnared many wineries while leaving them in a quandary as to how they should react. The second part is extremely time sensitive to gain some relief.
The Illinois Department of Revenue (DOR) is proposing new regulations on just when to charge sales tax on shipping charges to Illinois residents. In short, a winery won’t be liable for collecting sales tax on shipments where (a) the shipping charges are separately indicated on the invoice from the price of the wine; (b) an option was available to pick up the wine on-site; and (c) the wine is priced the same whether picked up or shipped.
In response to the rule change, the Illinois Attorney General will review liability claims by wineries on shipments that would fall under the new rules had they been in place at the time of the transaction, but to be reviewed, a winery must be a defendant in the suit and submit affidavits attesting their shipments were in compliance. Contact the Attorney General’s office by September 15, 2015 to apply for a review.