News Brief: Judge Strikes Down Illinois Affiliate Nexus Tax Law

Today marked a big victory for the affiliate 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. The case was originally filed by the Performance Marketing Association (PMA):

In addition, the Judge agreed with the PMA’s position that this statute is premature, given the Congressional moratorium related to Internet tax fairness.

The passage of the law led to the departure of several large affiliate companies in Illinois, including Coupon Cabin and Fatwallet, and constituted a net loss of tax dollars for the state. Following today’s announcement, PMA’s Executive Director, Rebecca Madigan, said, “We are thrilled with the outcome of today’s preceding and believe it paves the way for internet marketing affiliates to get back in business in Illinois…We commend Judge Cepero for his timely and thoughtful decision.”

Today’s decision will most likely be appealed by the state. But given the lack of interest in resolving the issue at a national level, at least until after the election, the courts appear to offer affiliates another path to success.



2 Responses to News Brief: Judge Strikes Down Illinois Affiliate Nexus Tax Law

  1. This is excellent news for Illinois, it’s just a shame that a variety of viable businesses had to relocate because of the earlier decision. The government was imposing this law in the first place to generate more tax revenue, but this law seems to have done the complete opposite of  that. Hopefully other states (and even other countries) will learn from this decision as well. 

  2.  Great news for Illinois! I grew up in East St Louis and I miss it.