Illinois Policy Institute has experts available to break down the ruling. Why was the law struck down and what does it mean? What was the “Amazon Tax” and why was it bad? 

MEDIA AVAILABILITY: Jacob Huebert, senior attorney at the Liberty Justice Center, is available to comment on the ruling and what it means. Ted Dabrowski, vice president of policy at Illinois Policy Institute, can discuss the Amazon Tax, why it was a bad law that forced businesses to leave Illinois and why this ruling is good news for Illinois’ economy.

WHERE: By phone, Skype, or in-person at 190 S. LaSalle St. in Chicago, at the corner of Adams and LaSalle.

BACKGROUND: The “Amazon Tax” was signed by Gov. Quinn in March 2011 and went into effect in July 2011. It was meant as a revenue grab but instead drove technology-based jobs out of Illinois, most notably FatWallet.com and CouponCabin.com.

The law required out-of-state online retailers such as Amazon.com to collect and remit sales taxes on purchases made by Illinois residents if the online retailer had a physical presence in Illinois.

The law expanded the definition of “physical presence” beyond a factory, warehouse, store or office to include affiliate companies in Illinois –– typically coupon or deal websites, whose operators earn commissions for driving shopping traffic to an online retailer. Many of these website operators were small businesspeople in Illinois who saw online affiliate marketing as a way to earn extra money or as an opportunity to be an entrepreneur.

A Cook County Circuit Judge ruled in April 2012 that the law was unconstitutional on two grounds: 1) it violated the Commerce Clause of the United States Constitution, which limits what entities a state can tax; and 2) it conflicted with the federal Internet Tax Freedom Act, which prohibits states from directly targeting and taxing internet commerce. The state of Illinois appealed the decision.

Today the Illinois Supreme Court ruled 6-1 that the Illinois “Amazon tax” is unconstitutional.