The Illinois Nexus Tax or “Amazon Tax” was recently deemed unconstitutional. When it was signed into law, Amazon and other retailers immediately canceled contracts with affiliates. One company, FatWallet, would lose 30% of its revenue as a result. In order to stay in business, they moved their entire operation out of Illinois and just across the border to Wisconsin. They made a short documentary about the move and the effect the law was having on businesses, employers, employees, and citizens of the state.
At this time, Amazon has “not made a statement about the decision or its impact.” We’ll be listening for when they do. If they reinstate Illinois Amazon Associates or if they’re waiting for the dust to settle with any appeal process.
I maintain my stance that the state of Illinois passed the law out of greed and wound up in a lose-lose situation – they didn’t get the extra sales tax revenue from Internet sales and they imposed a law that reduced the taxable income of some 9,000 individuals and drove companies, individuals, and entrepreneurs out of the state. Despite a fizzled effort to repeal the law, Illinois is actually winning by losing this court case. I’m not sure why they want to appeal it after seeing the consequences.