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Illinois Supreme Court Rules Online Sales Tax Law Unconstitutional

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AP Photo / Gregg Daniels

This ruling could be bad news for those pushing for federal legislation concerning online sales tax.

In May, the U.S. Senate passed the Marketplace Fairness Act, which would allow states to collect online sales tax on online purchases, but the House has not taken up the Senate measure.

The House is poised to craft its own online sales tax legislation. Rep. Bob Goodlatte (R-VA), chairman of the House Judiciary Committee, indicated in September that House legislation would not include a small business exemption similar to that in the Senate version.