Tag Archives: Illinois Supreme Court

ILN Today Post

Illinois: State Supreme Court determines that Chicago’s tax on suburban car rentals is unconstitutional

In the case The Hertz Corporation v. The City of Chicago, the Illinois Supreme Court reversed the lower court’s conclusion, thus holding that the Personal Property Lease Transaction Tax that the Windy City imposes on suburban vehicle rental agencies located within three miles of Chicago’s borders is unconstitutional.

BACKGROUND

In May 2011, 0fficials issued Ruling 11, which established that as of July 1, 2011, Chicago’s Department of Revenue (Department) would hold suburban rental agencies responsible for paying the Personal Property Lease Transaction Tax, in the absence of written proof that the lessee was exempt from paying the tax. Exemption was available if the lessee used the vehicle outside the City of Chicago. Without written proof, the default assumption was that a customer who is a resident of Chicago would be driving the vehicle there, and that a non-resident lessee would be using the vehicle outside of the city.
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Illinois Supreme Court Clarifies Standard for Enforcing Non-Compete Agreements

On December 1, 2011, the Illinois Supreme Court issued its opinion in Reliable Fire Equipment Company v. Arredondo, et al., which resolved several years of confusion over the appropriate standard for enforcing non-compete agreements in Illinois.

The Confusion

For years, Illinois courts consistently explained that they would only enforce a non-compete agreement if: it was no more restrictive than necessary to protect an employer’s legitimate business interests; enforcement would not impose an undue burden on the employee; and enforcement would not injure the public. As a result, substantial case law focused on what would, and what would not, constitute a legitimate business interest sufficient to support the enforcement of a non-compete agreement.

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