Illinois Internet Tax Law Voided by Judge

An Illinois judge has struck down the state’s Internet sales tax law—the second such ruling in recent months.

On April 25, Illinois circuit court judge Robert Lopez Cepero ruled that the state’s Internet sales tax law violates the Commerce Clause of the U.S. Constitution, according to a statement from the Los Angeles-based Performance Marketing Association, which challenged the law in court.

Cepero further ruled that having affiliates in the state does not constitute a “nexus”  that would permit the state to collect tax, the PMA added.

“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,” said Rebecca Madigan, executive director of the Performance Marketing Association, in a statement.

The Illinois Dept. of Revenue reportedly plans to appeal.