Illinois Supreme Court March 31, 1981, 53105 (United Air Lines, Inc. v. Johnson)

MR. JUSTICE RYAN

delivered the opinion of the court:

This case involves the application of the use tax exemption provided by section 3(c) of the Use Tax Act (Ill. Rev. Stat. 1977, ch. 120, par. 439.3(c)). The specific question is whether an Illinois taxpayer who, by contractual agreement, pays an Indiana seller’s Indiana gross income tax liability (Ind. Code sec. 6 — 2—1—1 et seq.