Michigan Business Tax

Internet Sellers Under Fire in Michigan

In REVENUE ADMINISTRATIVE BULLETIN 2007-6, the Michigan Department of Treasury has ruled that a retailer merely maintaining a web site outside of Michigan that Michigan customers can access to place orders is considered "actively soliciting sales in Michigan" and potentially is subject to the Michigan Business Tax.

Illinois Income Tax

Sellers of Services Beware

Under PA 95-0707, effective for tax years ending after December 31, 2008, services are no longer apportioned in Illinois based on cost of performance. Most services will now be sourced for Illinois Income Tax purposes based on receipt location by the customer. A throw-out rule is also instituted for services received in states in which the service provided does not have nexus.