Big Win for Web Based Businesses in Illinois

By US Daily Review Staff.

In March 2011, Illinois House Bill 3659 became law, aiming to require online retailers located outside of Illinois to collect use (sales) tax on transactions made by Illinois consumers. Under the law, online retailers who did not have physical storefronts or employees in Illinois would be forced to meet these burdensome tax collection obligations so long as they maintained relationships with Illinois website affiliates. Most online retailers terminated these relationships rather than be subject to the new law.

As a result, many thriving online affiliate marketing websites, including CouponCabin, were forced to relocate to nearby states to maintain business operations. This is one of the latent results of such public policy. This law was designed to help the state of Illinois to raise additional revenue, instead it led to businesses being chased to other states.

The Performance Marketing Association (PMA) subsequently filed a lawsuit challenging the constitutionality of the law, Illinois Circuit Court Case No. 2011 CH 26333. In a ruling issued last week, the court has declared the law invalid and unconstitutional.

In response to the law being invalidated, Founder and CEO Scott Kluth issued the below statement:

“CouponCabin is thrilled to hear the news about the affiliate tax being declared invalid in Illinois. We are relieved that the 9,000 affiliates that were based in Illinois may now have the opportunity to operate in Illinois without jeopardizing their business relationships with online retailers. This ruling places the responsibility for a solution back where it belongs: in Congress. CouponCabin continues to strongly support a federal solution to the taxation of all online transactions. For now, CouponCabin is heads down on helping people save money.”

According to a company statement, “ is a leading online destination for coupons including online coupon codes, printables, grocery coupons and more. Shoppers have saved nearly $350 million since 2003 and with the largest selection of coupons guaranteed to work, CouponCabin is the best place to start searching for savings. The average user saves $19 in just 80 seconds on the site. With customized email newsletters, browser savings alerts, new coupon alerts and more, shoppers will never miss out on a great deal with CouponCabin.

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All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.

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