BizSugar.com › Online Marketing › Affiliate Tax Law Struck Down: 3 Problems With The Laws

Nine months ago the Performance Marketing Association (PMA), filed a lawsuit against the State of Illinois over a newly-passed law requiring out-of-state out-of-state retailers that sell to Illinois residents through affiliates to collect and remit sales tax... Yesterday, however, something significant happened. On April 25, 2012 an Illinois Circuit Court, Judge Robert Lopez Cepero struck down the law. He 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."