Internet Tax Law Passed by Illinois House

Internet Tax Law Passed by Illinois House


The controversial HB 3659, or the Internet affiliate marketing tax of Illinois, was signed into law by Governor Quinn on March 10, 2011.

HB 3659’s affiliate marketing language was introduced and passed in both Houses within 30 hours of the last legislative session.

The signing of the measure proved to be a major blow to the companies that have been lobbying on behalf of the affiliate marketing and tech community in Illinois. They wanted to prevent this measure from becoming a law.

Ed Longanecker, the executive director of TechAmerica, stated, “We are of course disappointed with this decision, given the definitive data on the ineffectiveness of this proposal from other states.”

“We are committed to finding a solution that will minimize the negative impact of this legislation to support continued innovation and job growth for this critical industry in Illinois,” he added.

TechAmerica plays an active role in the U.S. technology industry. It is the largest advocacy organization in the industry and is focused on helping the top and bottom lines of its members. It represents almost 1,200 member companies of varying sizes from public, as well as commercial sectors of the economy.

Although similar proposals in recent past have been rejected by 12 U.S. states, several others are thinking about repealing their Internet tax laws because of constitutional concerns, job losses, as well as the negative impact on state revenue.