Overview
Mary Kay McCalla Martire focuses her practice on a wide variety state and local tax issues. She advises clients on matters related to sales tax, with an emphasis on the sale of digital products. In addition, she advises business clients on income tax apportionment and remote employee withholding obligations. Mary Kay counsels individual clients on residency and income sourcing questions, and frequently advises captives and their insureds on direct procurement tax issues. She also has experience with state and local utility and telecommunications tax matters.
Mary Kay has an extensive litigation background in state and federal court, as well as administrative tribunals. She has particular experience in the defense of qui tam (whistleblower) claims filed in the state tax arena and has won the dismissal of many Illinois False Claims Act cases. Mary Kay played a key role in many of the reported decisions issued by the Illinois appellate court in this area. She also has experience defending clients against class action and consumer fraud claims.
Mary Kay also has represented clients in a number of state insurance tax litigation matters, including serving as the principal trial attorney for a group of insurance companies that successfully challenged the constitutionality of the Illinois Privilege Tax (Milwaukee Safeguard Ins. Co. v. Selky, 179 Ill.2d 94 (1997)).
Mary Kay serves as Co-Chair of the Chicago Office Pro Bono Committee. She is actively engaged in a number of pro bono matters, including the representation of not for profits seeking sales and property tax exemptions, and serving as a guardian ad litem in child custody disputes. In 2014, Mary Kay was awarded one of McDermott’s Chicago Office pro bono service awards. In addition, she is an editor of the Firm’s State Tax Blog, InsideSALT.com.
Results
- Won Appellate Court verdict affirming dismissal of qui tam claim for over $1 million in attorneys’ fees. State of Illinois ex. rel. Stephen B. Diamond P.C. v. SR/Ecom, Inc., 2018 IL App. (1st) 172612
- Won bench trial verdict for taxpayer in qui tam suit alleging failure to collect and remit sales tax on shipping charges. State of Illinois ex. rel. Stephen B. Diamond, P.C. v. Treasury Wine Estates Americas Co., No. 14 L 7563 (Aug. 30, 2016)
- Won two appellate court rulings affirming the dismissal of qui tam lawsuits (State ex rel. Beeler, Schad & Diamond, P.C. v. Burlington Coat Factory Warehouse corp., 369 Ill. App. 3d 567 (1st Dist. 2006); People ex rel. Schad Diamond & Sheddon, P.C. v. QVC, Inc., 2015 IL App (1st) 13299 (April 21, 2015)) and obtained circuit court orders dismissing several other qui tam cases
- Won an administrative hearing proceeding before the Illinois Department of Revenue in 2014 regarding an automobile dealer’s use tax obligations on its inventory of loaner cars
- Won a trial verdict for a client in 2013 involving the Illinois manufacturing equipment and hand-held tool exemptions from use tax
- Obtained the dismissal of a federal court lawsuit seeking a refund of gas use and revenue tax from a public utility in 2011
- Counseled several clients regarding the state tax implications of aircraft acquisitions
- Resolved, on favorable terms, disputes with state and local officials in various jurisdictions, including:
- Illinois residency audits for high-net-worth individuals
- Ohio Sales and Use and Commercial Activity Tax audits
- Illinois, City of Chicago and Cook County hotel tax dispute
- Illinois sales tax dispute involving trade-ins of automobile leases
- Michigan Business Tax dispute with the State of Michigan
- Corporate income tax disputes with Illinois and North Carolina
- Illinois telecommunications tax dispute
- Personal property use tax dispute with the City of Chicago
- Workers compensation surcharge tax disputes with the States of Maryland, Minnesota and Illinois
Recognitions
- Martindale-Hubbell, AV Preeminent
- International Tax Review, World Tax, 2017 to 2023
- Illinois Super Lawyer 2005, 2008 to 2011
Community
- Chicago Bar Association, State and Local Tax Committee, past chair
- Chicago Lawyers Committee for Civil Rights Under Law, Inc., past chair, past board member
- Chicago Volunteer Legal Services, board member
- PING! (Provide Instruments for the Next Generation), past treasurer and past board member
- Oak Park River Forest Women Leaders in Philanthropy, 2023 chair
- Parents’ Instrumental Music Organization, past chair, past board member
Credentials
Education
University of Michigan Law School, JD, 1985
Michigan State University, BA, 1982
Admissions
Illinois
Michigan
Courts/Agencies
United States Supreme Court
US Court of Appeals for the Sixth Circuit
US Court of Appeals for the Seventh Circuit
US District Court for the Central District of Illinois
US District Court for the Northern District of Illinois (trial bar)
US District Court for the Eastern District of Michigan
Illinois Supreme Court
Michigan Supreme Court
