‘Amazon Tax’ Invalidated by Illinois Supreme Court
October 23rd, 2013 → 11:39 pm @ Carol
Good news for internet sellers (and that’s almost all writers)
‘Amazon Tax’ Invalidated by Illinois Supreme Court
By Jason Bramwell
A two-year-old Illinois law that required all businesses to collect state sales tax on purchases made by Illinois residents – whether or not the merchant had a physical presence in the state – was invalidated by the Illinois Supreme Court October 18.
Justices ruled six to one in an opinion to negate the so-called “Amazon tax.” In their ruling, which upheld a Cook County Circuit Court judgment in April 2012, the justices determined the Illinois Main Street Fairness Act of 2011 was superseded by the federal Internet Tax Freedom Act, which prohibits “discriminatory taxes on electronic commerce.”
I think this decision will make a lot of internet sellers very happy.
But the article points out that twelve other states have passed similar laws. The loser in the case (The Illinois Department of Revenue) has told the Associated Press that it is considering asking the US Supreme Court to intervene.
We’ll see what happens!
Learn more about sales tax from my article “We Love Sales, But Not Sales Tax” in the 2014 Guide to Self Publishing.
Carol Topp, CPA
