Bloomberg Tax
Nov. 14, 2019, 10:42 PM

State of Wayfair: Constitutional Worry in Illinois

Ryan Prete
Ryan Prete

Is a constitutional challenge brewing in Illinois?

A “fix-it bill” amending Illinois’ Wayfair-inspired tax law contains a curious feature suggesting the drafters believe it could face a constitutional challenge.

The language is contained in a budget implementation bill (S.B. 119) that is headed to Gov. J.B. Pritzker’s desk after passing the Senate Nov. 14, the final day of the fall veto session.

The constitutional problem comes down to potential inconsistencies in the way similar items are taxed based on conflicting sourcing rules.

Illinois’ strategy creates scenarios by which remote sellers and marketplace facilitators will be ...