Amazon to Start Collecting Sales Tax in Illinois
Amazon will start collecting sales tax from Illinois consumers next month to comply with a new state law.
Amazon spokesman Ty Rogers said Friday the online retailer will be required to collect the 6.25 percent tax starting Feb. 1. The Amazon spokesman says the online retailer "offers the best prices with or without sales tax."
Illinois lawmakers passed the measure last summer 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.
The updated law addressed the court's concerns. Illinois retailers supported the legislation to level the playing field for brick-and-mortar businesses.
It's unclear how much sales tax Amazon sales will generate, but it could amount to tens of millions of dollars.