Illinois Social Media User Tax and Digital Ad Tax Face Further Legal Challenges

In addition to the lawsuit filed on March 13, 2026, NetChoice filed two lawsuits on September 11, 2026, challenging Illinois’ newly enacted Social Media User Tax and Digital Ad Tax. NetChoice argues that the taxes unlawfully discriminate against electronic commerce in violation of the federal Permanent Internet Tax Freedom Act (PITFA) and infringe on First Amendment protections. NetChoice notes that the Social Media User Tax is similar to Chicago’s Social Media Amusement Tax, which remains the subject of separate litigation in NetChoice v. City of Chicago. The Sales Tax Institute will continue monitoring these developments and provide updates as they become available. (NetChoice v. Harris, Complaint for Declaratory Judgment and Injunctive Relief, filed September 11, 2026, in the Circuit Court of Cook County, Illinois.)

Posted on September 22, 2026