We are incredibly happy and relieved to learn that the Illinois Affiliate Nexus Tax law, also dubbed the Amazon Tax Law, has just been struck down by the Illinois Supreme Court as unconstitutional.
“In this decision, the Illinois Supreme Court agreed that the challenged statute is invalid. 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.”
This law, enacted in 2011, required any out-of-state retailer earning over $10k per year to collect Illinois State sales tax if Illinois-based affiliate marketers were driving sales. While other laws have cropped up in various states, this one hit particularly close to home for VigLink. In fact, we were forced to close our Chicago office or face losing our affiliate relationships, which would have devastated our business. Shortly thereafter we joined the Performance Marketing Association (the PMA) and began supporting their efforts to fight these discriminatory laws. We have the tireless efforts of the PMA to thank for this victory. They are the real heroes here. We hope this decision sets an influential precedent nationwide.
Posted by Oliver Deighton, VP Marketing