Illinois Sales Tax Law Pelted With Constitutional Challenges

Illinois is seeing a surge of litigation challenging the constitutionality of its complex sales tax law for remote retailers, with several cases in front of the state tax court.

At least three complaints from online retailers are pending in the Illinois Tax Tribunal, objecting to assessments levied by the Illinois Department of Revenue. They all contend the state’s sales and use tax law, crafted in response to the US Supreme Court’s 2018 ruling in South Dakota v. Wayfair, discriminates against interstate commerce, imposes undue burdens on sellers, and treats similarly situated taxpayers differently.

The suits focus primarily on different ...