Illinois “click-through nexus” law held unconstitutional

On Monday, the Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional (Performance Marketing Ass’n v. Hamer, No. 2011 CH 26333 (Ill. Cir. Ct. Cook Cty. 5/7/12)).

The order found that the law (35 Ill. Comp. Stat. 105/2), which expanded the definition of retailers obligated to collect sales tax to those having a contract with a person located in Illinois who refers potential customers through a link on the Illinois person’s website (a so-called click-through connection), violated the Commerce Clause and (by violating the federal Internet Tax Freedom Act, P.L. 105-277) the Supremacy Clause of the U.S. Constitution.

Read more at the Journal of Accountancy

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