The SALT Shaker - October 2016

October 1, 2016

By Keith HabelCPA

Partner, SALT Practice Leader


General Information Letters Regarding Computer Software Issued: The Illinois Department of Revenue issued general information letters regarding whether web/cloud based software is exempt as well as the taxability of computer software and its maintenance. ST 16-0033-GIL and ST 16-0029 GIL

General Information Letter Regarding Drop Shipments and Resale Certificates Issued: The Illinois Department of Revenue issued a general information letter discussing standard drop-shipment scenarios and certificates for resale. ST -15-0079-GL

Manufacturing Exemption: The Illinois Department of Revenue amended the definition of manufacturing for purposes of the machinery and equipment exemption to include mining or quarrying activity. Additionally, the machinery and equipment exemption now excludes machinery and equipment used in the generation of electricity for wholesale or retail sale, the generation or treatment of natural or artificial gas for wholesale or retail sale, or the treatment of water for wholesale or retail sale. IL 86.130.330


2017 Tax Amnesty Program: Recently enacted legislation required the Pennsylvania Department of Revenue to establish a 60-day tax amnesty program. The department announced the tax amnesty program will run from April 21, 2017 – June 19, 2017. The program generally applies to all taxes administered by the department that are delinquent as of December 31, 2015. Qualifying taxpayers may be permitted to waive 100% of the underlying penalties and 50% of the underlying interest. Pennsylvania Department of Revenue


Mobile Workforce State Income Tax Simplification Act of 2015: The House of Representatives recently passed H.R. 2315, which would require an employee’s earnings to be subject to state income tax and withholding when the employee is present and performing work in a state for more than 30 days during the calendar year. This bill would bring uniformity to withholding requirements across the states. H.R. 2315

For more information or assistance on state and local tax (SALT), call 888-556-0123, email

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