Hertz Ruling Spells Trouble for Chicago Cloud Computing Tax

Overview


Catherine Battin said an Illinois Supreme Court ruling to strike down a Chicago tax on cars leased outside the city could help companies challenge the city’s tax on cloud computing, since both involved Chicago taxing business activity outside of its jurisdictional authority. The cloud computing tax is “ripe for a challenge alleging there is an extraterritorial impact,” Ms. Battin explained, expressing that hope that companies will be “thinking about challenging” the cloud computing tax.