Affiliate Nexus Tax Laws: What's an Online Retailer to Do?

Some online retailers have started to respond by educating lawmakers who are considering passing these laws about the potential job losses and disruption in income that's at stake. In some cases they're challenging the constitutionality of the laws that have already been passed.

In 1992, the Supreme Court ruled in the case of Quill Corp v. North Dakota that the Commerce Clause gives the federal government power to regulate interstate commerce and prohibits certain state actions, including applying duties, that interfere with trade among states. There are significant similarities between that case and the issues raised by state affiliate nexus tax laws and a case challenging the affiliate nexus tax law in Illinois that's currently pending. Online retailers who would like to join the effort to block these laws can have a tremendous impact by taking action in one of the following ways: