SB3121 Summary

• Amends the Illinois Income Tax Act Section 304 regarding sales factor calculations for allocating business income of non-residents to Illinois.

• Removes provisions allowing sales to be sourced to Illinois when property is shipped from an Illinois location and the purchaser is not taxable in the purchaser's state (effective for tax years ending prior to December 31, 2019).

• Eliminates provisions treating premises of independent newspaper/periodical/book printers as places of storage for sales factor purposes.

• Removes provisions excluding sales from the Illinois numerator when seller and purchaser would be unitary business members except one has 80%+ business activity outside the U.S. and property is purchased for resale.

• Creates new rules for tax years ending on or after December 31, 2019, limiting in-state sales sourcing to only: (i) property delivered/shipped to purchasers in Illinois, or (ii) property shipped from Illinois to the U.S. government.