SPRINGFIELD - While Illinois taxpayers may not like losing the perceived pass they've had paying taxes on internet purchases, brick and mortar businesses in Illinois are happy with a vote the General Assembly Friday. Not only will Illinois businesses pay sales tax, so will those outside the state that make sales to Illinoisans via the Internet.
"Retailers across Illinois today saluted the Illinois General Assembly after a bill was successfully passed which will help restore long overdue fairness to the tax system for retailers and taxpayers in Illinois," the Illinois Retail Merchants Association said Friday.
The updated bill addresses concerns stemming from the 2011 digital nexus click-thru law which required remote sellers to collect and remit Illinois sales tax on purchases consumers make. The Illinois Supreme Court later ruled the Act violated federal provisions.
"The updated legislation corrects a longstanding problem where remote sellers were skipping out on paying sales tax on purchases made by Illinois residents," IRMA said. "SB 352 addresses the concerns the law did not treat all remote sellers equally. Under current state law, consumers face paying back taxes and fines from state government due to the failure of remote sellers to collect and remit the sales tax which is due. It was simply unfair that retailers and residents of Illinois were being punished because remote sellers are not playing by the rules."
"This legislation is another step in leveling the playing field for brick-and-mortar retailers along with residents of Illinois who are being unfairly penalized for purchases made out of the state." said Rob Karr,
president/CEO, Illinois Retail Merchants Association. "The passing of this legislation establishes Illinois as a national model for the retail industry and we hope this leads to momentum for a federal solution."
Both chambers were split on the measure - with parties members crossing the lines both for and against the bill.