Illinois Internet Sales Tax Overturned |
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The Illinois Supreme Court ruled
that the Illinois “click-through” nexus law that require the
collection of sales taxes from Internet transactions from
residents of Illinois is invalid.
The court ruled that the law violates the federal
Internet Tax Freedom Act.
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A 1992 challenge to the federal
Internet Tax Freedom Act resulted in
a ruling from the U.S. Supreme Court that reailers can’t
be forced to collect sales tax on out-of-state purchases
unless they have a physical presence in those states.
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“The court noted that “performance marketing,” when
engaged in through print media or on-the-air broadcasting,
does not give rise to tax obligations under the Illinois
statute. This enactment is therefore a discriminatory tax on
electronic commerce within the meaning of federal law, which
preempts it. The Illinois Supreme Court did not reach the
commerce clause issue. The circuit court was upheld.”
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Amazon ended its affiliates program
in Illinois when the law was adopted in 2011.
It had over 9,000 affiliates in Illinois at the time.
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Currently Amazon.com or its affilaites collects Internet
sales tax for the following states.
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Arizona
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California
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Georgia
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Kansas
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Kentucky
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New Jersey
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New York
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North Dakota
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Pennsylvania
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Texas
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Virginia
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Wshington
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West Virginia
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Sources:
IL Supreme Court Ruling
1992 U.S. Supreme Court Ruling
By Owen
Daniels
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