New Sales Tax Enforcement in Illinois
Illinois has taken away its only sales tax freebie – yes, the IDOR is now charging sales tax on Amazon products.
Prior to today, Illinois residents were able to purchase products on Amazon and have them delivered to their home while saving the sales tax. Depending on where you live, the savings could have been between 6.25% to 9.5%.
Starting today, you will be paying sales tax on Amazon products.
Why This Is Happening
The Marketplace Fairness Act
The Marketplace Fairness Act has been cited in the past as a reason why the IDOR has been pushing for sales tax to be implemented on Amazon purchases.
The Politicians feel as though this creates a more level playing field for retailers.
Questions About Nexus and Amazon?
If you have more questions about Nexus and Amazon, feel free to write to me at ma@myillinoistaxattorney.com.
Frequently Asked Questions
What changed about Amazon sales tax in Illinois?
Starting immediately, Illinois residents must pay sales tax on Amazon purchases. Previously, shoppers could avoid this tax, saving between 6.25% and 9.5% depending on location.
Why is Illinois now charging sales tax on Amazon purchases?
Illinois is enforcing this change to align with the Marketplace Fairness Act, aiming to create a level playing field for all retailers by requiring online marketplaces to collect sales tax.
How does the Marketplace Fairness Act affect Amazon buyers?
The Marketplace Fairness Act empowers states like Illinois to require large online marketplaces, such as Amazon, to collect and remit sales tax. This removes any prior advantage these platforms had over local brick-and-mortar stores.
Will this change impact other online retailers besides Amazon?
Yes. Any large online retailer that ships to Illinois and meets the legal threshold for sales tax collection will likely be subject to the same enforcement as Amazon.
Where can I get more information about Nexus and Amazon tax laws?
If you have questions about how Nexus laws apply to Amazon or other tax matters, you can contact Mansoor Ansari directly at ma@myillinoistaxattorney.com for clarification.