Amazon cuts Ill. ties over sales tax collection

Print
Email
|

Associated Press

Posted on March 11, 2011 at 8:00 PM

Updated Friday, Mar 11 at 8:02 PM

SPRINGFIELD, Ill. (AP) — Amazon.com has made good on its threat to cut ties with Illinois affiliates because of a new law requiring the online store to collect sales taxes.

Amazon notified its Illinois partners Friday that it will stop doing business with them April 15. It calls the tax law "unconstitutional and counterproductive.

Online retailer Overstock.com said later that it also will cut ties with Illinois-based partners beginning May 1.

Gov. Pat Quinn signed legislation Thursday that requires online companies to collect sales taxes on Internet purchases if they have any affiliates based in Illinois. Affiliates are businesses that refer customers to Amazon and Overstock and receive commissions on purchases.

The sales tax always applied to Internet sales. But individuals — not online businesses — were responsible for paying it. Few people did.

Print
Email
|