Amazon to Begin Sales Tax Collection in Illinois
Amazon will start collecting sales tax from Illinois consumers next month to comply with a new state law in Illinois.
Amazon spokesman said the online retailer will be required to collect the 6.25 percent tax starting Feb. 1. That is most likely still less than the state plus county rate that most consumers are accustomed to spending.
Background of the New Legislation
- Illinois lawmakers passed the measure last summer.
- The action came after the Illinois Supreme Court threw out an earlier attempt at legislation.
- The court ruled the earlier law violated federal rules against “discriminatory taxes” on digital transactions.
Retailer Support and Legal Adjustments
The updated law addressed the court’s concerns.
Illinois retailers supported the legislation to level the playing field for brick-and-mortar businesses.