Illinois Governor Signs Amazon Internet Sales Tax Law

[Gingersnap]

Illinois Governor Signs Amazon Internet Sales Tax Law
Mar. 10 2011 - 6:33 pm | 71,701 views | 0 recommendations | 9 comments
By JANET NOVACK

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.

Amazon has already said it will terminate its Illinois affiliates, just as it has said it will drop 10,000 California based “associates” if similar legislation pending in that state becomes law. Affiliates are paid a fee by Amazon and other retailers for sales brought in through advertisements and links on the affiliates’ web sites. In an escalating PR war, Wal-Mart, Sears, Best Buy and Barnes & Noble have all issued public invitations to Amazon’s spurned associates to join their affiliate marketing programs instead. Yesterday, the Alliance for Main Street Fairness, a bricks and mortar retailers organization, even announced a new web site to connect affiliates “about to get thrown under the bus” by online-only sellers with retailers who already collect sales taxes on line. Quinn’s office said today that the affiliate matchmaking service had been launched at his request.

In a statement, Scott Kluth, founder and CEO of Chicago-based CouponCabin.com called the Governor’s approval of the bill “deeply disappointing” and said he is “actively exploring” moving his seven year-old business to Indiana. Kluth, a long time resident of Chicago, had previously threatened such a move, telling Forbes, “I can see Indiana form the roof of our business.”

But Quinn, a Democrat, described the law as necessary to put the state’s “main street businesses” on “a level playing field” with online retailers and to protect main street jobs. In a statement issued by Quinn’s office, David Vite, president of the Illinois Retail Merchants Association praised the law as a matter of “fairness for retailers, fairness for the economy but most importantly, fairness for taxpayers.”

Forbes

[megimoo]

Forbes

This will end up costing them more than they would gain in taxes,typical mindless Liberal Democrat grab the money tax .

[Gingersnap]

This will end up costing them more than they would gain in taxes,typical mindless Liberal Democrat grab the money tax .

I expect it will in the long run.

[fettpett]

Some states collect sales taxes on items bought online. Here in Michigan you're suppose to report said purchase when you do your taxes....How many people do? only the idiots that don't know better.


Typical libtard Dem, lets raise taxes on everyone then put a tax on internet sales

[Madisonian]

Some states collect sales taxes on items bought online. Here in Michigan you're suppose to report said purchase when you do your taxes....How many people do? only the idiots that don't know better.


Typical libtard Dem, lets raise taxes on everyone then put a tax on internet sales

Biggest con is when you buy something off Ebay and it states "xxx residents must pay x% sales tax."
Yeah, right. They report it.:D

Next time, ask them for their state sales tax ID number. Seems they aren't in such a big hurry to collect it at that point.

[fettpett]

Biggest con is when you buy something off Ebay and it states "xxx residents must pay x% sales tax."
Yeah, right. They report it.:D

Next time, ask them for their state sales tax ID number. Seems they aren't in such a big hurry to collect it at that point.

lol...I didn't bother to tell them I had bought anything...it was around $1,500 in computer part, fuck them if they think i'm going to pay on that

[malloc]

But Quinn, a Democrat, described the law as necessary to put the state’s “main street businesses” on “a level playing field” with online retailers and to protect main street jobs. In a statement issued by Quinn’s office, David Vite, president of the Illinois Retail Merchants Association praised the law as a matter of “fairness for retailers, fairness for the economy but most importantly, fairness for taxpayers.”

The ignorance of this statement is just confounding. Those "main street business[es]" are already on a level playing field with online retailers as there is nothing barring those business from retailing online. This is simple intrastate protectionism, the type of behavior the commerce clause was specifically designed to curtail.