Illinois Now Has An Online Tax Law
March 11, 2011 
7 Comments
Sorry Illinois affiilates, it looks like your uneducated government doesn’t care much for you! Yesterday, Illinois governor Pat Quinn signed a bill that will require online retailers with affiliates in the state of Illinois to collect use tax of 6.25%. Use tax is what residents are supposed to pay themselves on purchases from the internet, but few rarely do. Now, the bill will require online retailers that do more than $10,000 in sales annually to start collecting use tax. This is only applicable to retailers that have current affiliate relationships. Amazon and Overstock have already said that they are ending their affiliate relationships to get out of paying the tax.
As I have stated before, this will bring in no more money for Illinois because now there will be no major affiliates in the state. Smaller retailers that don’t do $10,000 worth of sales will keep their affiliates because they won’t have to pay the tax. Most affiliates earn their money from programs like Amazon and Overstock and with them now gone, the affiliates lose income. Less income means less income tax that Illinois can collect. They will also not have the chance to collect the use tax because Amazon and Overstock will not have to collect it. Come on Illinois, use your brains for a change and realize that every state that has enacted this type of legislation has found that they are still losing money. Rhode Island did a study and found that they are now losing more money since enacting their sales tax law. Oops!
I don’t have much sympathy for states like Illinois, Rhode Island, North Carolina, and Colorado. They don’t use their brains to come up with these laws. They only hear what the “could” make while collecting taxes, but don’t realize that online retailers are not required by Federal law to collect anything if they don’t have any affiliations with the state. No affiliates, no tax collection. It just shows that these states and states considering this legislation (California) are run by a bunch of stupid uneducated people.
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You are dead on right my friend. I couldn’t agree more with your point of view about the new Illinois law. It seems the people who set these laws are a bunch of financial illiterates. How stupid….
I agree about them being financial illiterates, but unfortunately, if we continue to elect the illiterates, then stupid laws such as these will continue to be created.
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