Wednesday, March 28, 2007

There was a call from Zorn for questions about the new budget stuff, so here are some of mine.

Ok here are my questions. A lot of these have to do with the 'export' exemption.

1) Why not fix the current system if that system is broken?

2) How are services provided by in-state providers to customers who are out of state and in state to be taxed? For example lets say my firm does consulting work for a company that has an HQ in Illinois but the computer server we do work on is in Iowa (is that an exported service or not). Second example, I charge people to use a website to manage fantasy football teams, do I export a service just to users who give an address outside of state?

3) Does the state feel this will reduce capital spending by business? If not, why not. If so by how much?

4) If I sell parts to a company is the location I ship the parts to that determines if the parts are exported or where the parts are used?

5) For a car made at the Ford plant in Chicago does the tax just apply to cars delivered to dealers within Illinois?

What % of the corporations referenced that pay no taxes LLCs?



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