Illinois Settles Tax Suits, But Constitutional Questions Linger

Several Illinois Tax Tribunal complaints from online retailers challenging unpaid liabilities were resolved under the state’s recent tax amnesty, but the larger constitutional questions raised by the litigation remain unanswered.

At least five complaints objecting to tax assessments levied by the Illinois Department of Revenue were dismissed following the state’s six-week tax amnesty, which closed last month and collected at least $300 million.

The complaints pointed to different treatment for out-of-state sellers with no physical presence in Illinois compared to certain in-state sellers, who may benefit from lighter tax rate and tax collection obligations. The out-of-state retailers alleged Illinois’ ...