Illinois Supreme Court quashes online sales tax

Illinois' Supreme Court has invalidated a state law that taxes certain Internet transactions, explaining that it was superseded by a federal law that bans charging levies on "electronic commerce."

The ruling by a vote of 6-1 marks the first time that a state court has quashed an online sales tax law.

Illinois' Department of Revenue is now thinking about taking the case to the U.S. Supreme Court.

The companies who could be directly or indirectly affected by the decision in Illinois include Amazon (AMZN), eBay (EBAY), Overstock (OSTK), Blue Nile (NILE), ChannelAdvisor (ECOM) and RetailMeNot (SALE).

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Comments (9)
  • brea
    , contributor
    Comments (49) | Send Message
    plain and simple these companies should be paying taxes.
    they've clearly demonstrated their allegiance isn't to America.
    at this point they're verging on treason.
    American govt. was NEVER intended to be run from tax revenue derived from the working man exclusively, which is pretty much where we are at this point.
    "corporations are people too" certainly consume greater level of resources as well as infrastructure, all built on the backs of American workers. corporations conveniently forget this.
    America all subsidized by working people!!

    20 Oct 2013, 04:34 AM Reply Like
  • Gary J
    , contributor
    Comments (10916) | Send Message
    uh whatever
    20 Oct 2013, 07:31 AM Reply Like
  • brea
    , contributor
    Comments (49) | Send Message
    gary, my apologies for bothering you w/ these irrelevant worthless fact(s). glad to know your busy and so willing to take up the slack for these "corporations are people too". a real patriot, and we certainly will need more w/ your generous disposition.
    look forward to paying sec8 housing and food stamp subsidies for people who are already working full time jobs. actually as long as your apparently feeling so generous, perhaps you could add an additional 800 to my monthly income as well. funny, I figured you for a "free market capitalist" as opposed to "socialized corporate welfare", my mistaken presumption obviously. live and learn as they say.
    20 Oct 2013, 08:22 AM Reply Like
  • Len613
    , contributor
    Comments (27) | Send Message
    Who do you think pays sales taxes???
    20 Oct 2013, 03:08 PM Reply Like
  • 2puttwo
    , contributor
    Comments (656) | Send Message
    brea, sales taxes are not paid by the corporations, they just collect them. If they kept them, it still wouldn't be treason. If they give them to Osama bin Laden' s son, then it might be.
    21 Oct 2013, 02:13 AM Reply Like
  • brea
    , contributor
    Comments (49) | Send Message
    my predominate point was "CORPORATIONS ARE PEOPLE TOO" have gone to extraordinary lengths to avoid participating
    in "building" America. they use the resources to say nothing of the people, military protection, and refuse to pay for the privilege in the greatest "democratic" "free market capitalistic" society the world has ever seen.
    citizens don't have the option of NOT PAYING for ongoing destruction of country, at primarily corporate bribery lobbied for by our captured political "leaders".
    corporations need to pay their share was my point. we don't have "free market capitalism" we have "socialized corporate welfare"!!!!!!
    21 Oct 2013, 01:35 PM Reply Like
  • krk
    , contributor
    Comments (866) | Send Message
    Amazon does not collect sales tax on sales in Illinois. So just means status-quo there.


    It is collecting in 13 states (Arizona, California, Georgia, Kansas, Kentucky, New Jersey, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington and West Virginia) and Wisconsin starting Nov-1.
    And, in 3 to 5 more starting Jan-2014 (IN,NV,TN, CT? & MA?).


    And interestingly, Amazon is appealing to the SCotUS NY's Amazon tax which some speculate with the goal of actually losing it so that it has a level playing field vs. other online competitors.
    "..Amazon is now far more concerned with creating a level playing field than with exploiting a sales-tax loophole. ..Now it’s a retail giant with operations in nearly every state ... It’s eventually going to collect sales tax everywhere, and it knows it.
    So why then is Amazon fighting in New York and petitioning the Supreme Court? The New York law .. says that retailers with affiliates in the state .. must collect sales tax. Amazon clearly dislikes New York’s law. It’s .. easily circumventable .. E-commerce startups can simply avoid authorizing any local affiliates, and Bezos most certainly doesn’t want some wily entrepreneur to do what he did and create the next Amazon. .. By getting the Supreme Court to overturn Quill Corp. v. North Dakota, Amazon would clear the way for a new law that ..taxes all parties evenly."
    20 Oct 2013, 11:17 AM Reply Like
  • atgarner
    , contributor
    Comment (1) | Send Message
    Hey brea, sales taxes are actually passed on to the consumer, not paid by the corporation. I can understand your point, but isn't it irrelevant in this case?
    20 Oct 2013, 02:53 PM Reply Like
  • Shmulik444
    , contributor
    Comments (20) | Send Message
    It's customers that pay taxes not corporations. Treason in deed. American government was never meant to be so large and important in our lives that a 20% slow down (it was never a shut down to any but the gullible) that a 20% slow down would be a source of panic. Why do you think the equity markets yawned at it's prospects in the weeks leading up to a GOP capitulation? Not, surely, that everyone was supremely confident that the GOP would always cave to hysterical gov/media reports. Has anyone noticed how China is taking steps toward establishing an alternative to the dollar as a foreign exchange currency? And why you should ask. Not because of too little government intervention but because of it.


    One nasty little rule threatened to destroy the financial system. Remember a little thing called "mark to mark"? Just one example of how this works is what brought LPX down to 50 cents a share at one point. They had substantial debt instrument holdings that were never at risk, but because the mark to mark rule required valuation to be set by the market and allowed no alternative form of valuation LPX could, for a time, not claim any value in these assets, cutting them off from using the assets as collateral in financing for day to day operations. One little stroke of the pen would have ended the credit crises over night. But "never waste a good crisis" said Rom Emanuel, top dog in the Obama administration. Instead, it's more taxes to save us from the "evil corporations" and trillions in spending plus trillions of new dollars to dilute the currency and mostly to benefit so-called "to big to fail banks". Today we move from manufactured crisis to manufactured crisis. Zero interest money still flows to the banks who buy treasuries and inflate the bond market bubble and you whine that you can't pay more taxes via AMZN or EBAY.
    20 Oct 2013, 03:08 PM Reply Like
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