KPMG report: Recent litigation regarding sales tax collection and remittance obligations in Illinois
Lawsuits have alleged that the sales tax collection and remittance obligations imposed by a state or locality post-Wayfair were unduly burdensome
Since the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018), a few lawsuits have alleged that the sales tax collection and remittance obligations imposed by a state or locality post-Wayfair were unduly burdensome. A recent suit filed with the Illinois Tax Tribunal asserts that the Leveling the Playing Field for Illinois Retail Act (35 Ill. Comp. Stat. 185/5-1) violates the Commerce Clause of the U.S. Constitution and the Uniformity Clause of the Illinois Constitution. The lawsuit also asserts a separate Taxpayer Bill of Rights issue stemming from the procedure of the audit.
Read a June 2024 report* prepared by KPMG LLP tax professionals that focuses on the argument that contends that the act discriminates against remote retailers compared to retailers that have a physical presence in Illinois.
* This article originally appeared in The Tax Adviser and is provided with permission.