SPRINGFIELD - Last week, the Illinois Supreme Court tossed out Illinois' "Amazon tax," but the decision could be appealed by the state to the U.S. Supreme Court, where New York has already stirred attention on the issue. And, Illinois' U.S. Senator Dick Durbin's bill legalizing an internet sales tax has passed the Senate and could be picked up in the U.S. House.
The Illinois Supreme Court found the state's internet sales tax to be void and unenforceable because it conflicts with a federal law that temporarily blocked new state or federal taxes aimed at online retailers or Internet providers, the first court in the country to take that stance. But others say a conflict with federal law merely makes the state tax unenforceable.