Illinois Governor Signs Amazon Internet Sales Tax Law

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.

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Good on Amazon for giving them the proverbial middle finger! Corrupt criminals like Quinn and the Illinois Legislature need to be shown their idiotic decisions will not prove successful.

The lack of understanding by these crooks, and their continued interventionist efforts is mind boggling. I have to agree with you, its nice to see the entities that make up the Free market give as you claim, the " proverbial middle fingers'!

reply to post by HaveAnotherOne


Texas did something similar, Amazon took their jobs and left the state.

Good for Amazon.

They can run but they cant hide. Eventually Internet commerce will have some sort of federal sales tax slammed to it.

Of course states that currently have their own internet sales taxes wont drop that. It'll just be added and we'll pay a double tax.

reply to post by thisguyrighthere

They can run but they cant hide. Eventually Internet commerce will have some sort of federal sales tax slammed to it.

If you're right, then I expect to see a dramatic drop in online sales. No one will bother with online purchases if they have to pay the taxes for that transaction.

reply to post by Whereweheaded


There is always a way around pesky little thing like ridiculous taxes. Unless IL and other states decide to pay me to act as their tax collector, I will never charge customers a tax.

reply to post by Whereweheaded


There will be somewhat of a drop.

But convenience often wins over frugality.

You see people all the time willing to spend just a little more for that home delivery or that bigger selection all the time.

The cost of things has more to do with how much a consumer is willing to pay than anything else and even in poor economic times the consumer is usually willing to pay more than a thing is actually worth to get their hands on that thing. Just about every product on every shelf in every store is marked up far beyond it's real value and consumers buy buy and buy.

From mp3 players to food to video games to homes everything is priced far above any intrinsic value. An extra tax might make a dent but people will keep buying.

Most of my peers would rather pay up on shipping charges then go a town over and get a thing at a lesser price for the "convenience."

The hordes of drones in cube farms make for good impulse buying as well.

When time is short, paying for convenience is the proper choice.

My guess would be business will shift slightly to smaller online retailers who wont really care what other states try to force them to do.

You know, I really beginning to believe that there is some master plan to crush Illinois business and residents.

I was very happy to hear that Amazon was ditching their affiliates in IL to get around the law, but now what about those affiliates are there now people out of work?

Gov. Quinn seems to think that because he won the election the people of IL gave him some sort mass seal of approval, he forgets just how close that election was. voices.washingtonpost.com...

About 19,000 votes were the difference I would hardly call that an overwhelming endorsement and if he keeps going the way he has, and pushing through a bunch of overwhelming unpopular laws and regulations he'll be out on his arse soon enough.

Is there anything and I mean ANYTHING that Illinois doesn't tax? Why does anyone still live there??

reply to post by jjkenobi


I'm north of IL and for the life of me I cant figure out why anyone still lives there.

Especially when they have criminals like Mike Madigan running the state.

As long as it was purchased in Illinois you must pay sales taxes to the state of which you are purchasing goods in or from.

reply to post by TheImmaculateD1


The transaction takes plate outside of Illinois borders.

No tax owed.

Between Quinn, Emanuel and the savior Obama, it looks like you people in Illinois really know how to pick winners.

reply to post by HaveAnotherOne



If I make a sale for a say, toy car in Illinois I must pay Ill sales tax.

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.

reply to post by TheImmaculateD1


In the fairy tale world of state government you would. In reality there is no record of the sale in question the state can access. Then even if they went to the trouble of actually finding the purchase then what would they get? A couple of dollars of tax at most.

In the real world the states would lose money trying to get that sales tax money. It's not worth it for them to pursue.

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.

If you are a seller who resides in say, Ill and have a Federal tax id registered to that state and I buy something from you you must collect the sales tax on behalf of your state.

NJ, NY, Cali and CT requires that any product sold in the respective states that the seller/dealer is to collect taxes on behalf of those states regardless where the buyer lives.

In the event like that since you are in State A you must collect and remit taxes for State A as States B - D have no legal right or claim to any tax money generated. That would be known as "Double, Triple and Quadruple Taxation" which is illegal.

reply to post by TheImmaculateD1


If I sell to someone who resides in the same state where my business is located, I collect sales tax. No other state can force me to do the same since I dont have a physical presence there.

Reply to post by ntech

The state constantly loses money to collect debts. Just about every tax evader in the country costs more to pursue and prosecute than they owe.

Taxes are about revenue second. They are about power first.


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