Senator Durbin hasn’t introduced his national sales tax bill–his Main Street Fairness Act, which would allow states to charge sales tax on companies without a physical presence in the state–but the debate over sales tax continues to rise. Two states, Arizona and California, are now considering affiliate tax bills, like those already in effect in New York, Rhode Island, North Carolina and Illinois. Meanwhile South Carolina has taken the opposite approach and has offered tax incentives to Amazon. Proponents of these affiliate bills, or of larger sales tax changes such as those proposed by Senator Durbin, argue they will level the playing field between online retailers like Amazon or Overstocked.com and smaller, local businesses. Opponents of the affiliate bills argue they harm small businesses. Retailers like Amazon, rather than charging customers sales tax, have tended instead simply to cut their ties with affiliates in states that pass affiliate taxes.
For more information on sales tax, use tax or other tax related legal concerns, contact the Illinois tax attorneys at Horowitz & Weinstein.