Back in February 2011, I wrote about an Illinois “anti-affiliate” Bill that if enacted would force out-of-state retailers to collect Illinois state sales tax for Internet sales, based on the premise that affiliate marketers create nexus in Illinois.
In the following month, Illinois Govern Quinn misguidedly signed into law HB 3659, which essentially abolished Affiliate Marketing in Illinois.
Affiliate Marketing Finally Gets a Break
After many months of diligent work from folks involved within the affiliate marketing industry, Judge Robert Lopez Cepero of the Illinois Circuit Court issued a ruling that finds the Illinois Affiliate Nexus Tax unconstitutional. He went on to declare that nexus wasn’t established by the activity outlined in the statute.
At this point, it is not clear whether Governor Quinn will challenge the decision, but it is a giant leap in the right direction for the affiliate marketing industry.
Here is some coverage from Illinois ABC station discussing the situation:
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