Under 35 ILCS 105/2, out-of-state retailers are presumed to be maintaining a place of business in Illinois and required to collect use tax on sales to Illinois customers if the following conditions are met:
- the retailer has a contract with a person located in the state under which the person, for a commission or like consideration, refers potential customers to the retailer by providing a promotional code or other mechanism that allows the retailer to track purchases referred by such persons;
- the cumulative gross receipts from sales of tangible personal property by the retailer to customers who are referred to the retailer by all persons in the state under such contracts exceed $10,000 during the preceding four quarterly periods; and
- the retailer does not prove that such contacts are insufficient to meet the nexus standards of the U.S. Constitution.
The rebuttable presumption added allows a retailer by "maintaining in its records documentation that shows that persons with whom the retailer has agreements have not engaged in solicitation activities on behalf of the retailer in Illinois that are sufficient to meet the nexus standards of the United States Constitution during the preceding 4 quarterly periods," to show that nexus does not exist.
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