Illinois Supreme Court quashes online sales tax

|By:, SA News Editor

Illinois' Supreme Court has invalidated a state law that taxes certain Internet transactions, explaining that it was superseded by a federal law that bans charging levies on "electronic commerce."

The ruling by a vote of 6-1 marks the first time that a state court has quashed an online sales tax law.

Illinois' Department of Revenue is now thinking about taking the case to the U.S. Supreme Court.

The companies who could be directly or indirectly affected by the decision in Illinois include Amazon (AMZN), eBay (EBAY), Overstock (OSTK), Blue Nile (NILE), ChannelAdvisor (ECOM) and RetailMeNot (SALE).