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Old 03-20-2011, 04:01 PM
 
2,053 posts, read 3,509,437 times
Reputation: 1142
Ah, nothing like irony.

From the Rockford Register-Star:

Our View: Quinn should sign online sales tax bill - Rockford, IL - Rockford Register Star

And from Rockford's own news leader, WREX:

FatWallet says internet tax bill will force it to leave Illinois - WREX.com
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Old 04-28-2012, 12:23 AM
 
Location: Chicago
35,926 posts, read 54,868,338 times
Reputation: 24543
Quote:
Originally Posted by Drover View Post
I could understand a law that requires Amazon to collect a tax on behalf of its affiliates located in Illinois if the purchaser is also located in Illinois. But to require it to collect sales taxes for sales to Illinois residents from Amazon itself or other out-of-state affiliates is unreasonable, and it might even be unconstitutional.
Sure enough, a Cook County judge ruled yesterday that Illinois' "Amazon Tax" is unconstitutional. Granted, it was only a local judge and there's a long line of judicial review where the decision can either be affirmed or overturned, but the initial ruling carries a lot of weight unless it's clearly erroneous.
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Old 04-28-2012, 03:48 AM
 
Location: Chicago, IL SouthWest Suburbs
3,528 posts, read 2,725,543 times
Reputation: 6078
Isn't this being reviewed at the federal level.
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Old 04-28-2012, 04:21 AM
 
Location: Chicago
35,926 posts, read 54,868,338 times
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Quote:
Originally Posted by sunnyandcloudydays View Post
Isn't this being reviewed at the federal level.
I have to imagine someone has taken this to federal court though I haven't heard of any such case; haven't really been looking for it either. At any rate if this case makes it up the appeals chain it'll probably end up there eventually anyway as this is essentially a federal issue.
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Old 04-28-2012, 07:17 AM
 
Location: Chicago, IL SouthWest Suburbs
3,528 posts, read 2,725,543 times
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So today I see Texas is able to gather texas on the retail giant Amazon.

Amazon according to the Chicago Tribune amounts to 20% of annual internet sales transactions.

Seems Amazon is getting cozy with the states they have distribution centers.

California, Texas in specific.


Honestly I have never bought a single thing thru Amazon but this is clearly getting to be a sensitive subject with state revenues dropping across the nation.

With the age of the internet retailing some type of federal system has to be considered.

I guess where I get confused is the states and how we can have a uniform tax code when states are independant on the tax of retail goods.
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Old 04-28-2012, 12:09 PM
 
Location: Mokena, Illinois
26 posts, read 50,360 times
Reputation: 14
This issue is very complicated. It really does come down to whether or not it is fair to pay a tax on internet goods. The best argument I've heard is that you are generally buying from another state and therefore should not be forced to pay the tax of your own state. But, the internet is a complicated issue when it comes to taxation. In regards to falling state budgets, Illinois is not doing well. According to an IRS report, taxpayers in Illinois are leaving in substantial numbers. The IRS estimates that about 366,616 tax paying households have left Illinois from 1995-2009, causing the state to lose an estimated $26 billion in tax revenue.
Frankly, I know a lot of people who are hoping to leave the state, including members of my own family and myself included. There is not a lot of opportunity here and it is becoming too expensive to live in the City or the burbs. Just my 2 cents.
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Old 04-28-2012, 01:01 PM
 
Location: Not where you ever lived
10,711 posts, read 14,114,301 times
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It is not complicated at all; it is time consuming. Impose a flat Internet tax of 7% to each state that has residents who purchase their products. This can of worms was started years ago when Amazon and the others wanted their brand "seen" and promoted on the maximum number of sites across the web. Site owners received a "penny a click" from Amazon every time a visitor clicked the Amazon link on their site.

Now it is time for Amazon and the other boys who played the game and made millions to pay their dues. It is not difficult bookkeeping. Track the number of sales, the total sales for each state and rebate the same tax rate to each state. Let the states worry about their share of taxes due the IRS.

The impossible is not a flat tax; it's a piece of cake. It is the different tax for each of our 50 states and Possessions that make a non-flat tax a nightmare to collect and disperse for any internet company.

Internet purchases are not without its hazards. I purchased three pair of diabetic socks form a near state. The cost to mail less than 300 miles was $6. With mail the socks costs $9.60 per pair. Had I been able to buy it locally The tax would have been about 50 cents and the socks would have cost $1.50 less.

When the tax is actually charged, the socks will cost over $10 per pair. I can't win either way. The nearest pharmacy that carries this sock is a 100 mile round trip.

Last edited by linicx; 04-28-2012 at 01:14 PM..
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Old 04-29-2012, 03:07 AM
 
Location: Chicago
35,926 posts, read 54,868,338 times
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Quote:
Originally Posted by sunnyandcloudydays View Post
So today I see Texas is able to gather texas on the retail giant Amazon.

Amazon according to the Chicago Tribune amounts to 20% of annual internet sales transactions.

Seems Amazon is getting cozy with the states they have distribution centers.

California, Texas in specific.
It has nothing to do with being "cozy" with states in which they have distribution centers. Of course Amazon has an indisputable legal obligation to collect sales taxes on items it sells to residents of states in which they have a physical presence. A distribution center is a physical presence of the most conspicuous type. Amazon has no such physical presence in Illinois.

But that's not the situation at issue. The legal issue is whether Amazon is obligated to collect sales tax on behalf of vendors for which they essentially act as a third-party marketing agent. The legal answer is probably "no."

Last edited by Drover; 04-29-2012 at 03:20 AM..
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Old 04-29-2012, 04:18 AM
 
Location: Chicago, IL SouthWest Suburbs
3,528 posts, read 2,725,543 times
Reputation: 6078
Quote:
Originally Posted by kmanloup View Post
This issue is very complicated. It really does come down to whether or not it is fair to pay a tax on internet goods. The best argument I've heard is that you are generally buying from another state and therefore should not be forced to pay the tax of your own state. But, the internet is a complicated issue when it comes to taxation. In regards to falling state budgets, Illinois is not doing well. According to an IRS report, taxpayers in Illinois are leaving in substantial numbers. The IRS estimates that about 366,616 tax paying households have left Illinois from 1995-2009, causing the state to lose an estimated $26 billion in tax revenue.
Frankly, I know a lot of people who are hoping to leave the state, including members of my own family and myself included. There is not a lot of opportunity here and it is becoming too expensive to live in the City or the burbs. Just my 2 cents.
The topic was not unhappy Illinois residents who are complaining about taxes.

This subject has been debated time over time on the fourm and Illinois clearly lands in the middle of the pack.

Frankly I know no one who is moving out of this state.
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Old 04-29-2012, 11:46 AM
 
Location: Mokena, Illinois
26 posts, read 50,360 times
Reputation: 14
Quote:
Originally Posted by sunnyandcloudydays View Post
The topic was not unhappy Illinois residents who are complaining about taxes.

This subject has been debated time over time on the fourm and Illinois clearly lands in the middle of the pack.

Frankly I know no one who is moving out of this state.
I apologize from deviating from the topic. I was just giving a reason why tax revenue has been falling.

As for implementation of the sales tax, it would have to be done nationally, not at the state level. Otherwise, as it has been reported already, Amazon will just end affiliation with Illinois distributors to avoid having to pay the tax.

I do not really see why people are so angry with amazon for doing that. From a business standpoint, it is what I would have done. It saves money and I would not have to pass the cost onto the consumer (lets face it, businesses would rather pass the cost to consumers rather than own up themselves), and it keeps customers happy because they do not have to pay more. I live right on the border of Will and Cook County, and I study in McLean County. If I can avoid it, I buy in either Will or McLean so I can avoid paying a higher sales tax in Cook. I do not do that because I hate Cook County, I do it to save money since I do not have a job and have to pay for college.

Last edited by kmanloup; 04-29-2012 at 11:55 AM..
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