On March 10, Illinois Governor Pat Quinn signed into law HB 3659, the affiliate nexus bill passed by the legislature in January. Quinn's signing makes Illinois the fourth state (along with New York, Rhode Island, and North Carolina) to enact such a law. The Illinois bill provides that once an out-of-state Internet retailer realizes $10,000 in receipts from sales made to customers linked to the retailer's website from the websites of its Illinois affiliates, the retailer will be deemed to be a “retailer having or maintaining a place of business in this State” and be obligated to collect and remit tax on all of its sales to Illinois consumers.
In response, Amazon.com promptly informed its Illinois affiliates that it is terminating its relationships with them. Look for further developments in the coming days.
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