Kathrein v. City of Evanston, Ill.

Federal 7th Circuit Court
Civil Court
Tax Injunction Act
Case Number: 
No. 12-2958
Decision Date: 
May 15, 2014
Federal District: 
N.D. Ill., E. Div.
Dist. Ct. did not err in dismissing on jurisdictional grounds plaintiffs’ lawsuit alleging that defendant’s Affordable Housing Demolition Tax violates 5th and 14th Amendments, as well as other provisions of state law, where Tax Injunction Act (TIA) prohibits federal courts from enjoining, suspending or restraining assessment of any tax under state law. While Ct. of Appeals panel originally determined that defendant’s Demolition Tax was actually regulatory device and not tax within meaning of TIA, such that plaintiffs could proceed on their case on remand, Ct. of Appeals’ subsequent en banc ruling in Empress Casino Joliet Corp., 651 F.3d 722, that expressly disagreed with instant panel’s decision, allowed Dist. Ct. to again find on remand that Demolition Tax was tax within meaning of TIA, so as to preclude plaintiffs from proceeding on their action.