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After two-months of fence-sitting, Illinois Governor Pat Quinn today signed controversial legislation requiring Internet retailers like Amazon.com and Overstock.com to collect Illinois’ 6.25% sales tax if they have affiliate sellers in the state. House Bill 3659, the Mainstreet Fairness Bill, was passed by the state’s lame duck legislature in early January.
Since then, the bill has been the subject of fierce lobbying by traditional bricks and mortar retailers, who supported it, and Illinois-based Internet-only businesses, who warned that if Quinn didn’t veto it some of them would flee the state. Had Quinn done nothing, the bill would have become law tomorrow without his signature.
They can run but they cant hide. Eventually Internet commerce will have some sort of federal sales tax slammed to it.
Originally posted by HaveAnotherOne
reply to post by TheImmaculateD1
Evidently you aren't informed in how online sales are performed. Collection of a sales tax is only applicable if you have a PHYSICAL presence in that state. Hence Amazon getting rid of their affiliates in IL and not rejecting all sales to IL residents.
I run an online business. I am located in State A. My host servers are located in State B. My payment transaction servers are located in State C.
If you live in State D and make a purchase from me, I am under no obligation to collect sales tax and remit it to State D. Nor should I ever be without being compensated to act as a tax collector on behalf of State D.