Illinois Governor Signs Internet Sales Tax Law

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Illinois Governor Pat Quinn today signed into law the Internet sales tax, or "Amazon" tax. Like other states before Illinois, many sizable businesses have dreaded such a move ever taking place. In fact, two prominent Illinois Internet businesses previously made threats to leave the state if the law were enacted.

Tim Storm, CEO of FatWallet.com previously said, ""I started (my business) in Wisconsin, but moved to Illinois because it is home. I can literally see Wisconsin from my window – it’s five miles away. If I have to move, I will."

Storm was joined by CouponCabin CEO Scott Kluth in saying, "We’ve grown 100 percent year over year in the last 7 years in revenue, we’re anticipating 54 percent this year. I can’t lose a third of my business and continue to grow and walk away from that growth."

Of course, Illinois can expect Amazon to sever ties with businesses in the state, as they have done in other states that have passed similar legislation.

Michael T. Carrigan, president, Illinois AFL-CIO had this to say, "The Illinois Internet tax represents much needed revenue for our state. Most states require sales tax on internet transactions. It levels the playing field for retailers who have permanent operations in our state and must charge sales tax.

"Labor has worked closely with business to address this problem in our state, to help protect jobs and grow Illinois’ economy. We were very disheartened at the attempts to stop this legislation by amazon.com who threatened businesses and working men and women at a time when jobs are precious."

Many argue, however, that the legislation does not actually increase revenue in the state but causes a loss of jobs and an overall decrease in total sales.

 
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9 comments

JeffreyL 03-10-2011 9:00 PM

Absolutely ridiculous, well I guess they will be selling a lot of PO Boxes w/ forwarding capabilities.

JeffreyL 03-10-2011 9:07 PM

this really states:""" It levels the playing field for retailers who have permanent operations in our state and must charge sales tax. """

 I am a small minded person and see that I am an example of people that trip over dollars to pick up nickels. %percentage comparison will be the unemployment GOES UP 2% this year for a few dollars in taxes

 that could be recuperated MORE by auditing state programs for duplicate billing and spending for the same services !!

LloydH 03-11-2011 3:57 PM

Amazing that the same Governor that last week abolished the death penalty for individuals in Illinois signs a death penalty for businesses in this week.

KenL 03-11-2011 5:15 PM

Whether the tactic works or not, you can't blame the state for trying to get a piece of the money.  It seems like an out-dated loophole that I we can buy something through the mail and get away without paying state sales tax.  Hopefully all states will come together and create a nice tax web.  

Everyone is so busy worrying about their individual financial situation, which in my eyes is ugly.  We are individuals, but we are also members of a team.  And, our team needs us to pay taxes.  

If you want to protest something- protest the war that is sucking up our tax money.  Don't blame a state for trying to increase tax revenue, even if it backfires in the end.

MarkW 03-11-2011 5:25 PM

It's not a big surprise.  Most of the people that pushed this legislation through, or signed it in to law apparently have no idea of how mobile an internet business can be.  They won't get that much sales tax and they'll end up losing what taxes they could have gained (among other things) from individuals and businesses who will end up moving.  The state of Nevada may be primed for new growth.

ShayG 03-13-2011 2:53 PM

I think that it's a poor way to make money after years of spending. Www.logicping.co.il ~ Commented through my Website Magazine iPad App!

MelissaP 03-14-2011 8:19 AM

If your budget is tight, then you're not living within your means. Government solutions have always been to raise taxes when they can't stay in their budget.  

The American public is over taxed now because of wasteful political spending.  Politicians need to learn to cut their own pay, cut their wasteful spending and live within their means.

Nick8921 03-16-2011 4:08 PM

"And, our team needs us to pay taxes"

I quit the team. Who says any state needs more taxes? Every state needs to stop wasting our money, and to let us keep more of it. Just listen to that: let us keep our money.

Ever read Atlas Shrugged? After Illinois businesses leave the state, and go elsewhere, and then "elsewhere" passes new taxes, too, then the businesses will just retire, and let the governments find the money elsewhere.

There should be no sales tax anywhere.

James Hobson 03-16-2011 8:25 PM

As always, if people exhibit a sustained activity that involves money, the government will bully their way into it and find a way to make money from it . . . . . and then denounce corporations as being greedy.

The UNIONS like it because it stifles competition and perhaps draws revenue out of their coffers.  This hurts business, and forces consumers to pay more for goods - plain and simple.

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