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Illinois Governor Signs Internet Sales Tax Law

Posted on 3.09.2011

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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