from the a-good-win,-but-the-battle-is-almost-over dept
In NY, Amazon sued over their law, but the lawsuit got tossed and continues to wind through the appeals process. However, in Illinois, it appears that a similar law has been struck down by the Illinois Supreme Court, who said it violated federal laws prohibiting discriminatory taxes on online sales. And make no mistake about it: this is targeted directly at online sales.
It appears that the Illinois Supreme Court recognized the real relationship between Amazon and affiliates:
But Justice Anne Burke, writing for the court's majority, questioned whether there was any substantial difference between out-of-state businesses reaching Illinois consumers through a click-through-nexus approach or through other approaches that aren't taxed.There is one dissent, which argues that since this isn't imposing any new taxes, just who collects them, that there is no discrimination issue here at all. Either way, all of this may be moot as there's increasing support in Congress to basically force the issue on internet companies, making them collect the sales tax for states.
"The click-through link makes it easier for the customer to reach the out-of-state retailer," Burke wrote. "But the link is not different in kind from advertising using promotional codes that appear, for example, in Illinois newspapers or Illinois radio broadcasts."