Illinois Supreme Court Rules DOR Has Exclusive Authority Over Sales Tax Allocation Dispute Between Municipalities

The Illinois Supreme Court March 20 ruled that the Department of Revenue (DOR) has exclusive jurisdiction over sales tax allocation disputes between municipalities. The Village of Arlington Heights filed a complaint against the City of Rolling Meadows seeking reimbursement of sales tax revenues not correctly allocated to Rolling Meadows over several years. The trial court dismissed the Village of Arlington Heights complaint on subject matter jurisdiction. The Supreme Court affirmed the dismissal, finding that the statutory framework grants the Department of Revenue exclusive authority over tax disputes and divesting trial courts of jurisdiction except for a limited right of action ...