On October 18, 2013, the Illinois Supreme Court ruled 6-1 that the state’s click-through nexus law is pre-empted by federal law. This decision upholds lower court rulings in favor of Performance Marketing Association. The Illinois Supreme Court specifically found that the click-through nexus law is pre-empted by the Internet Tax Freedom Act (Click here for more information on the Internet Tax Freedom Act). For previous news items on this topic, click here and here.
UPDATE: Due to law changes, new click-through provisions are now effective. For additional information, see Illinois Enacts Click-Through Nexus Legislation.
(Performance Marketing Ass’n, Inc. v. Hamer, Illinois Supreme Court, No. 114496, October 18, 2013)