Illinois Affiliate Law Shot Down By Judge
- Sales Tax News
- Apr 25, 2012 | Susan McLain
Over a year ago, Business Insider reported that “Amazon is terminating its affiliate marketing program in Illinois after the state passed a new law requiring ecommerce companies like Amazon to charge sales tax in the state….”
Amazon cancelled Affiliate accounts as of April 15, 2011. Some businesses, such as FatWallet moved their entire company across state lines. FatWallet only had to move about 5 miles, but rather than lose 30% of its revenues, they left a new building and hiked over to Wisconsin to continue their affiliation with Amazon.
Now, Performance Marketing Association (PMA) announces that Chicago, Illinois “Circuit Judge Robert Lopez Cepero ruled that the Illinois Affiliate Nexus Tax law violates the Commerce Clause of the US Constitution, declaring the activity described in the statute does not establish nexus.”
PMA expressed it’s excitement on the outcome of the case. They “…believe it paves the way for internet marketing affiliates to get back in business in Illinois.”