Former State Senator Steve Rauschenberger must be smiling.
His family operated a furniture store in Downtown Elgin and took up the cause of charging sales tax on goods purchased over the internet from other states.
Ironically, it was a U.S. Supreme Court decision in a case brought by Quill Office Supplies in the early 1990’s that established that people did not have to pay sales tax on products purchased across state lines.
Illinois passed a bill that said if a company had a nexus in Illinois, such as as a firm promoting Amazon products, that firm would have to collect the taxes for Amazon or another similarly situated company.
With the vast expansion of Amazon and the distribution warehouses in Illinois, of course, the company now collects taxes on its Illinois sales.
At that point Amazon withdrew from such relationships in Illinois.
Now comes a Rauschenberger successor, Democrat Cristina Castro, with the support of
- Pam Althoff
- Karen McConnaughay
- Sen. Dan McConchie
to “level the playing field with” with brick and mortar stores.
Sponsors have titled the bill the “Marketplace Fairness Act.”
supported by the following State Senators representing McHenry County
The bill exempts smaller businesses who
- the cumulative gross receipts from sales of service to purchasers in Illinois are $150,000 or more; or
- the retailer or serviceman enters into 200 or more separate transactions for sales of service to purchasers in Illinois.
The bill passed the Senate 39-10-1 last Tuesday.
$750 in addition taxes is expected to be collected.
The roll call for Senate Bill 2577 is below: