Judge Rules Illinois Affiliate Nexus Law is Unconstitutional

Illinois Governor Pat Quinn signed HB 3659 into law back in March 2011, which forced out-of-state retailers to collect Illinois state sales tax for Internet sales, based on the view that affiliate marketers constitute a tax nexus for the retailers.

The Performance Marketing Association filed a lawsuit against the Illinois Department of Revenue over the constitutionality of the law last summer.

And now Judge Robert Lopez Cepero has ruled the law unconstitutional.

Judge Cepero ruled that the law violates commerce clause of the U.S. Constitution.

This could set the stage for affiliate marketers to get back to business in Illinois.

But how much damage have the bureaucrats already done by driving companies like FatWallet out of the state?