Illinois Internet Retailers Get Taxed
Illinois has recently become the next state to embrace sales tax for retailers on the Internet. There are several other states in America that have also initiated sales taxation for Internet retailers based in their state. Over a year ago, Texas State billed Amazon for $269 million in back sales taxes due to the fact that the warehouse was located in Texas. Since then, several states have adopted the sales taxation for Internet retailers. Following receipt of the $289 million bill from the state of Texas, Amazon closed the warehouse in Texas.
Now this this form of Internet taxation has one become known as the Amazon Tax. Illinois Gov. Pat Quinn signed the legislation to generate cash flow from state sales taxes collections on the Internet. This law applies to online companies based out of Illinois, while conducting business on websites
- The Tax Foundation has not seen evidence to suggest that this type of taxation will generate substantial revenue for individual states.
- Illinois companies may be force to leave the state if estimations in taxation prove to be the threatening to the survival of the business.
The Internet has opened the door for people of every demographic to start a business. It is representative of the entrepreneurial spirit in the U.S. While some websites may create an Internet presence that suggests the company is large and revenue producing, there are many websites that are the actual store front of people working from home to contain costs through difficult economic times. Illinois Internet retailers may not be subject to the law if information demonstrates that the majority of the company’s business is not based in the state of Illinois.
If you, your family or a friend need to protect their legal rights, contact PADOVE LAW, toll free at (877) 446 5294 for a free consultation.