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 Amazon.com and Overstock.com that do not have a physical presence in Illinois but have relationships with Illinois advertisers and publishers like CouponCabin.com.

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 CouponCabin.com, said he'll move the enterprise to neihboring Indiana.

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