Automatic Data Proc. v. Department of Revenue

9 Citing cases

  1. Mead Corp. v. Dept. of Revenue

    371 Ill. App. 3d 108 (Ill. App. Ct. 2007)   Cited 3 times
    In Mead Corp. v. Department of Revenue, 371 Ill.App. 3d 108, 308 Ill. Dec. 566, 861 N.E. 2d 1131 (2007), the court held that the sale by Mead of the assets of its Lexis/Nexis division produced business income because the corporation retained the proceeds of the sales and used them in its operations.

    Carpetland U.S.A., Inc., 201 Ill. 2d at 369, quoting AFM Messenger Service, Inc., 198 Ill. 2d at 395; Zebra Technologies Corp., 344 Ill. App. 3d at 481. Purely factual findings are entitled to deference and are reversed only if they are contrary to the manifest weight of the evidence ( CarpetlandU.S.A., Inc., 201 Ill. 2d at 369; Zebra Technologies Corp., 344 Ill. App. 3d at 480), while pure questions of law are reviewed de novo (Carpetland U.S.A., Inc., 201 Ill. 2d at 369; Zebra Technologies Corp., 344 Ill. App. 3d at 480), giving deference to the Department's interpretation of its governing statutes and its regulations (see Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 443-44, 729 N.E.2d 433 (2000)). The Illinois Income Tax Act (Act) provides that a corporate taxpayer conducting a multistate business in Illinois use the formula apportionment method of taxation.

  2. Zebra Technologies Corp. v. Topinka

    344 Ill. App. 3d 474 (Ill. App. Ct. 2003)   Cited 11 times

    Income is presumed to be business income unless it is clearly classifiable as nonbusiness income. Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 440, 729 N.E.2d 897 (2000). Courts have interpreted the statute as setting out two tests for determining whether income is business income, namely, the "transactional test" and the "functional test."

  3. American States Insurance Co. v. Hamer

    352 Ill. App. 3d 521 (Ill. App. Ct. 2004)   Cited 11 times
    In American States, 352 Ill. App. 3d at 531, 816 N.E.2d at 667, the First District interpreted Texaco-Cities to stand for the proposition that without "evidence that the sale was a cessation of a separate and distinct portion of Texaco-Cities' business," a gain would be properly classified as business income.

    The issue is whether the Department properly characterized the gain from the sale of American States as "business income." The Illinois Income Tax Act (Act) ( 35 ILCS 5/101 et seq. (West 2000)), derived from the Uniform Division of Income for Tax Purposes Act (UDITPA), addresses when income of a nonresident corporation conducting business within Illinois is subject to taxation by the State. Under the statute, foreign corporations are required to pay taxes in proportion to the amount of their income-producing activities. 35 ILCS 5/304(a) (West 2000); Texaco-Cities Service Pipeline Co. v. McGaw, 182 Ill. 2d 262, 268, 695 N.E.2d 481, 484 (1998); Automatic Data Processing, Inc. v. Illinois Department of Revenue, 313 Ill. App. 3d 433, 438, 729 N.E.2d 897, 902 (2000). The Act generally establishes two methods by which corporate income will be divided among Illinois and the other jurisdictions in which the taxpayer conducts business: "apportionment" and "allocation.

  4. Blessing/White, Inc. v. Zehnder

    329 Ill. App. 3d 714 (Ill. App. Ct. 2002)   Cited 17 times
    In Blessing/White, 329 Ill. App. 3d at 717, 768 N.E.2d at 335, Blessing/White, Inc., a New Jersey corporation, was engaged in human-resource consultation with a sales office in Chicago.

    Under the statute, foreign corporations are required to pay taxes in proportion to the amount of its income-producing activities. 35 ILCS 5/304(a) (West 2000); Texaco-Cities Service Pipeline Co. v. McGaw, 182 Ill. 2d 262, 268, 695 N.E.2d 481, 484 (1998); Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 438, 729 N.E.2d 897, 902 (2000). Essentially, the Act establishes two methods by which corporate income will be divided among Illinois and the other jurisdictions in which the taxpayer conducts business.

  5. People v. Thonn

    2014 Ill. App. 123365 (Ill. App. Ct. 2014)

    In construing statutes, the ordinary, and commonly accepted definitions of the words used therein are accepted as the correct definitions of those words, unless the statute gives special definitions to the contrary. Champaign Township, 331 Ill. App. 3d at 587 (court held that "coterminous" had a clear, singular meaning); see Automatic Data Processing v. Department of Revenue, 313 Ill. App. 3d 433, 444 (2000) (in the absence of a definition, the term " 'investment company' " would be accorded its ordinarily understood meaning). Thus, the lack of a definition does not render the words "motor vehicle accident" ambiguous. ¶ 60 In the absence of any evidence that a motor vehicle accident occurred, section 11-501.4-1 does not apply.

  6. Wendy's Int'l, Inc. v. Hamer

    2013 Ill. App. 4th 110678 (Ill. App. Ct. 2013)   Cited 2 times
    In Wendy's, the Fourth District cited a supreme court case from 1941 describing insurance as "risk shifting and risk distribution."

    “Apportionment is intended to assign the amount of income to a state that is proportional to the amount of income-producing activities in that state.” Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill.App.3d 433, 438, 246 Ill.Dec. 246, 729 N.E.2d 897, 902 (2000). ¶ 19 According to section 1501(a)(27) of the Illinois Income Tax Act (35 ILCS 5/1501(a)(27) (West 2008)), “ ‘unitary business group’ means a group of persons related through common ownership whose business activities are integrated with, dependent upon and contribute to each other.”

  7. National Holdings, Inc. v. Zehnder

    369 Ill. App. 3d 977 (Ill. App. Ct. 2007)   Cited 2 times
    Noting that "[f]ollowing the decisions in Texaco-Cities and Laurel Pipe Line, courts have recognized a business-liquidation exception to the functional test." Id. at 984.

    Business income is apportioned and nonbusiness income is allocated." Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 438, 729 N.E.2d 897, 902 (2000). The taxpayer bears the burden of establishing that income is nonbusiness income.

  8. USX Corp. v. White

    352 Ill. App. 3d 709 (Ill. App. Ct. 2004)   Cited 6 times   1 Legal Analyses

    We also note that generally "courts will give substantial weight and deference to an interpretation of an ambiguous statute by the agency charged with the administration and enforcement of that statute. [Citation.]" Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 443-44, 729 N.E.2d 897 (2000). This deference is based on the agency's experience and expertise. AFM Messenger Service, Inc. v. Department of Employment Security, 198 Ill. 2d 380, 394, 763 N.E.2d 272 (2002).

  9. Philip v. Daley

    339 Ill. App. 3d 274 (Ill. App. Ct. 2003)   Cited 3 times
    In Philip v. Daley, 339 Ill.App.3d 274, 274 Ill.Dec. 188, 790 N.E.2d 961 (2003), the city was in the midst of executing a detailed plan to take the plaintiffs' property.

    Second, they rely on the well-established principle that when a statute is ambiguous, courts generally defer to interpretations by an agency charged with administering the statute. Automatic Data Processing, Inc. v. Department of Revenue, 313 Ill. App. 3d 433, 444 (2000); Smith v. Town of Normal, 238 Ill. App. 3d 944, 949-50 (1992). Third, they note that IDOT interprets section 47 to require a certificate only for acts that impact on things such as runways and flight paths.