Friday, March 11, 2011

Illinois Internet Advertising Tax Law Backfires

PRNewswire ~ Illinois Gov. Pat Quinn today signed the so-called Internet tax bill (HB 3659), which requires out-of-state merchants who advertise on websites based in Illinois to collect taxes from all Illinois customers. One large firm's CEO said he'll move out of state as a result.

The new tax law relates to out-of-state merchants like and that do not have a physical presence in Illinois but have relationships with Illinois advertisers and publishers like

Under the provisions of the new law, these merchants are deemed to have a presence (nexus) in Illinois and are therefore required to collect Illinois sales tax.

In response to the Governor's approval of HB 3659, Scott Kluth, CEO of, said he'll move the enterprise to neihboring Indiana.

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