If you’re an Illinois-based publisher or small business who has suffered reduced income or lost sources of revenue when Illinois passed its Affiliate Nexus Tax, or “Amazon Tax”, you may be very interested in a press conference being held tomorrow. HB 3659 became Public Act 96-1544 with Governor Quinn’s signature on March 10th of this year and went into effect July 1st. As a result, Amazon, Overstock, and other affiliate programs disqualified Illinois residents from participating and earning revenue from the programs.
The net result for Illinois? A loss. They didn’t gain any additional sales taxes and citizens and businesses saw a reduced income, that would normally have resulted in a higher tax bill. Some businesses or individuals even chose to leave the state, heading to neighboring Indiana or Wisconsin.
State Representative Dave Winters (R-Rockford) realizes that the state chose to enter a lose-lose situation. Tomorrow, he is holding a press conference to discuss suspending the affiliate nexus tax. Along with him, Illinois Policy Institute Executive Vice President Kristina Rasmussen and President/CEO of ShareASale, Inc. Brian Littleton will discuss the negative economic impacts the legislation has caused for local businesses and the state.
California passed an affiliate nexus law in June of this year and has since repealed it in September for one year, to give the federal government a time frame for a federal sales tax to be implemented.
The Performance Marketing Association has sued Illinois for the “Amazon Tax” and now it is encouraging to see legislators also address the issue. We will hopefully have more tomorrow following the event. Here is the full press release:
Illinois General Assembly
For Immediate Release
October 20, 2011
Contact Rep. Dave Winters (815) 282-0083
Springfield, IL…State Representative Dave Winters (R-Rockford) will be hosting a press conference at 11:30 a.m. on Wednesday, October 26th in Room 217-N of the Stratton Building in Springfield to discuss suspending the recently enacted affiliate nexus tax, or what is commonly referred to as the “Amazon Tax.” Rep. Winters will be joined by Illinois Policy Institute Executive Vice President Kristina Rasmussen and President/CEO of ShareASale, Inc. Brian Littleton to discuss the negative economic impacts of the newly established online sales tax and legislation aimed at suspending Public Act 96-1544. When the law was enacted in July, thousands of Illinois small businesses saw a devastating reduction in their income, forcing many to leave the state or close their doors.
WHO: Representative Dave Winters, Kristina Rasmussen (Illinois Policy Institute Executive Vice President) and Brian Littleton (President/CEO of ShareASale, Inc.)
WHAT: The negative impacts of the affiliate nexus law on Illinois entrepreneurs and how a suspension will give lawmakers time to implement a constitutional alternative that benefits the state.
WHEN: Wednesday, October 26th at 11:30 a.m.
WHERE: 217-N Stratton Building (Second floor, North Wing, East Corridor of Representative offices) at 401 South Spring Street, Springfield, IL.