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Illinois Judge Rules 'Amazon Tax' Unconstitutional

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Illinois Judge Rules 'Amazon Tax' Unconstitutional

Postby sunnyd » Sat Apr 28, 2012 7:21 am

Story :

Handing a victory to the Performance Marketing Association, a judge in Illinois ruled this week that the state can't require online companies like Amazon to collect sales tax from state residents.

Cook County Circuit Judge Robert Lopez Cepero invalidated a 2011 Illinois law that required out-of-state online retailers that worked with in-state affiliates to collect sales tax. In-state affiliates included online publishers that displayed ads linking to the retailers' sites.

Cepero said that the law unconstitutionally restricts interstate commerce, according to PMA executive director Rebecca Madigan, who was present at the court hearing on Wednesday. Cepero said he intends to issue a written ruling, but hasn't yet done so, according to Madigan.

Last year, the PMA filed a lawsuit challenging the measure, referred to as the "Amazon tax." The group argued that the Illinois law would unlawfully restrict interstate commerce; the U.S. constitution provides that only the federal government can regulate interstate commerce.

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