Judge rules against Illinois online tax law

CHICAGO (AP) — A Cook County judge has ruled against a state law that requires Internet companies to collect sales taxes on all transactions with Illinois customers.

Crain's Chicago Business reports (http://bit.ly/I64gTg) Judge Robert Lopez Cepero ruled Wednesday that the law isn't enforceable because there is a federal Internet tax moratorium through 2014. Cepero also found that just because a company has an affiliate in Illinois doesn't mean it has enough of a presence for tax purposes.

The 2011 law caused affiliates of websites like Amazon.com to relocate out of Illinois.

The Los Angeles-based trade group Performance Marketing Association brought the lawsuit. The group called the ruling "a victory." The Illinois Department of Revenue said it "respectfully" disagrees with the judge's ruling and is reviewing appeal options.

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