We regret to inform you...
January 7, 2011 4:36 PM Subscribe
'Illinois wants Amazon to collect 6.25 percent sales tax and send it back to the state.' Amazon fights back.
posted by VikingSword (149 comments total)
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Under current law, only companies with a physical presence in the state have to do this, but the new bill declares that even having affiliates in Illinois counts as "presence." 'An e-mail sent from the company to all of its Illinois affiliates this morning warns that, should Illinois Governor Pat Quinn sign a just-passed tax bill, Amazon is cutting off every affiliate in Illinois.
"We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates," said the e-mail.'The Associates are furious.
Of course, 'this has been a long-running fight for Amazon. Back in 2008, it challenged a similar New York state law in court, calling it an "unconstitutional" attack that singled out a particular company. Amazon's threats to kill its affiliate program haven't been idle, either; the company has closed the program in Colorado, Rhode Island, and North Carolina thanks to similar laws there.'
At issue is not the law itself, but compliance - the purchaser is supposed to pay the tax anyway, but few do. That is why the push is on, to compel the vendors to collect the tax on behalf of the states.
The death of tax-free internet purchases has been forecast for some time
However, now that states are starved for revenue
, is the end of the tax-free ride in sight?