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IL Supreme Court Invalidates "Internet Tax"

Fri, 18 Oct 2013 15:46:54 CDT
By: AP

The Illinois Supreme Court is invalidating a two-year-old Illinois law charging taxes on certain Internet sales. The justices ruled 6-1 in an opinion released today to invalidate the so-called ``Amazon tax.'' The ruling determined that the law violates a pre-emptive federal decree prohibiting ``discriminatory taxes on electronic commerce.'' Lawmakers created the Internet tax in 2011 on out-of-state electronic retailers. The law claimed those merchants maintained a presence in the state through a website link. In other words, if a blogger referred customers to a company by encouraging clicking on a site-based advertisement, that was ``presence'' in Illinois. That obligated the seller to collect sales tax. Justice Lloyd Karmeier dissented, saying the law doesn't impose any new taxes.

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