(CNet) The Illinois Supreme Court struck down a state law Friday that required online retailers, like Amazon, to collect sales tax if they have in-state Web affiliates, according to Associated Press.
The court decided the law violated federal rules, which prohibits putting a discriminatory tax on digital sales. It's the first time a high court has thrown out a law like this -- 18 other states have similar laws. In New York, the court upheld the law, spurring Amazon and Overstock.com to petition the Supreme Court.
Amazon ended its affiliates program in Illinois when the law was adopted in 2011. Web affiliate programs let online retailers pay Web sites for linking to products. The state law forced the companies to collect sales tax from purchases made through links from sites based in Illinois even if the retailer was not.
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