Legal News

Illinois Internet Sales Tax Struck Down by State Supreme Court
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The Illinois Supreme Court struck down a 2011 state law that imposed a sales tax on online retailers, this week. This might lead to local brick-and-mortar shops being at a disadvantage against online retailers, but the reasoning of the court was quite clear in its 6-1 decision which held the state law was in conflict with a federal law that forbade the establishment of a “discriminatory tax on electronic commerce.”

The internet sales tax law in the state had been promoted by the Illinois Retail Merchants Association and large retailers and was meant to remove the apparent unfair advantage online retailers had against local establishments in being able to skip sales tax.


Earlier, a Cook County judge had ruled the law to be both unconstitutional and violating the federal Internet Tax Freedom Act, because it imposed a tax on businesses that did not have a “substantial nexus” within the state.

However, the high court did not hold the tax law was unconstitutional, but that it did violate the federal law and was invalid.

The Performance Marketing Association, a trade group representing online sellers had challenged the law arguing that the law was discriminatory in as much as it placed a tax on the online performance marketers, but did not place a similar tax on offline activities of out-of-state marketers.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The Illinois Retail Merchants Association has expressed that they hoped the Illinois Department of Revenue will appeal the decision to the US Supreme Court as retail merchants in the state are at a disadvantage without the protection of the law.

The IRMA also urged passage of the Marketplace Fairness Act, a federal legislation that is meant to compel online retailers collect sales tax on behalf of the states of residence of their customers.



Associate Attorney - 1-3 years experience


Rymer, Echols, Slay & Nelson-Archer, P.C. is seeking an associate for our office in the Houston Gall...

Apply now

Intellectual Property Attorney


Bodman is seeking to fill two full-time attorney positions in its Intellectual Property Practice Gro...

Apply now

Associate Attorney (Commercial Real Estate)


Dynamic six (6) attorney boutique commercial real estate law firm located in the Mosaic District of ...

Apply now

Sr. Attorney

USA-CA-Monterey Park

Yang Law Offices is a boutique law firm headquartered in the City of Monterey Park, with a team of 1...

Apply now




Search Now

Remote Sales/recruiting Professionals


Remote Sales/Recruiting Professionals: No Cold Calling Required BCG Attorney Search is seeking a ...

Apply Now

Real Estate Finance Associate Attorney


Northfield office of a BCG Attorney Search Top Ranked Law Firm seeks a real estate finance associate...

Apply Now

Real Estate Finance Attorney


Northfield office of a BCG Attorney Search Top Ranked Law Firm seeks real estate finance attorney wi...

Apply Now


To Top