In their race to raise taxes for a cash-strapped state government, Illinois legislators are pursuing a mirage that other states have already discovered was a dry and dusty disappointment. Yesterday, the General Assembly approved a version of the “Amazon Tax” that would actually reduce tax revenue while harming Illinoisans who make a living through online advertising.
As in other states, this tax scheme will once again backfire to the detriment of Illinois’ entrepreneurs and state tax coffers. HB 3659 is supposed to force an out-of-state retailer to collect Illinois sales tax if they use in-state ‘affiliates’ – Illinois websites that earn revenue by showing ads for the out-of-state retailer. Read more