|This is the first page of the filed complaint.|
Secondly, the plaintiffs claim that they are being harmed by the tax as they now have to pay more for the services they use.
Lastly, the plaintiffs claim that the city is breaking the law by violating the Federal Internet Tax Freedom Act. This act states that states and local government cannot "impose discriminatory internet-only taxes". With this in mind, the plaintiffs believe that the city has violated this by creating a tax on internet services.
The Supreme Court also has had a say on something similar. Quill Corp. v. North Dakota was a case where the state of North Dakota attempted to tax Quill Corp who had no actual physical presence in North Dakota (They only sold things to people within the state). The supreme court agreed with Quill Corp. and during their official statement said:
"The lack of a physical nexus in a state is sufficient
grounds to exempt a corporation from having to pay
sales and use taxes"
So what do you think?
Do you think the City of Chicago has any legal ground to implement this new tax?
Do you think the Comptroller has exceeded his power?
Do you think the plaintiffs have a strong legal standing?
Link to article [Here]
Link to legal complaint [Here]