North Carolina is one of a few states to have an ‘Amazon Tax’. It is a tax forcing out of state retailers to collect taxes on online sales if the retailer has an online affiliate located in the taxing state. Today the Illinois Supreme Court voted in favor of removing the tax from internet retailers in Illinois. Hopefully this will set the stage for what hope to be a promising repeal of the tax here in North Carolina. To learn more about North Carolina’s Amazon Tax, read a JLF Spotlight about the issue here.
The Illinois Supreme Court ruled 6-1 today that Illinois’ so-called Amazon tax on out-of-state Internet retailers is pre-empted by federal law. (Read the legal opinion here.)
The decision upheld lower court rulings in favor of Performance Marketing Association Inc., which said federal law pre-empted a 2011 state law’s attempt to create so-called “click-through” nexus when retailers advertise on Illinois-based websites.
The state law prompted the CouponCabin website and other Illinois-based Internet marketers to move to Indiana and Wisconsin.
Performance Marketing is a Los Angeles-based trade association that represents online advertisers.
