It’s Called the Marketplace Fairness Act
Illinois Senator Dick Durbin is one of the Senators who introduced Internet Sales Tax Reform through the Marketplace Fairness Act which, according to the Act is designed to “restore States’ sovereign rights to enforce State and local sales and use tax laws, and for other purposes.”
The Act establishes a basis and methodology for States to charge sales tax when a Seller makes a sale to a customer in another State. Intriguing though, is the Small Seller Exemption which in effect allows businesses with less than $500,000.00 in previous annual sales to continue to make sales without charging sales tax if they can do so under present rules. This could give small businesses an advantage over “big box stores” and other large sellers.
In Illinois, collections of Illinois Sales Tax, Retailers Occupation Tax (ROT), Use Tax (UT), Motor Fuels Tax, Service Use Tax (SUT) and Service Occupation Tax (SOT) are enforced by the Illinois Department of Revenue through Sales Tax Audits and Illinois Department of Revenue Collection Acts which could include Levy of bank accounts, levies on other property, revoke suspend, or hold a business certificate, and revoke a sales tax business certificate.
For more information on online sales tax, the Illinois Department of Revenue, or other civil or criminal tax law concerns, contact Horowitz & Weinsein.