A Cook County judge on Wednesday ruled against a state law that requires Internet companies to collect sales taxes on all transactions with Illinois customers.
Judge Robert Lopez Cepero said the law isn't enforceable because there is a federal Internet tax moratorium through 2014. Cepero also found that just because a company has an affiliate in Illinois doesn't mean it has enough of a presence for tax purposes.
The 2011 law caused affiliates of websites like Amazon.com to relocate out of Illinois.
The Los Angeles-based trade group Performance Marketing Association brought the lawsuit. The group called the ruling "a victory."
We figure a third went out of business, a third went out of state and a third saw their revenue decline. These businesses should be able to come back or rebuild their businesses," said the group's executive director, Rebecca Madigan, according to Crain's Chicago Business.
The Illinois Department of Revenue said it "respectfully'' disagrees with the judge's ruling and is reviewing appeal options. The department had said it imisses out on $153 to $170 million in uncollected sales taxes each year from online purchases.
Judge Rules Against Illinois Online Tax Law
Illinois Department of Revenue said it misses out on as much as $170 million in sales tax revenue annually
Copyright The Associated Press
