Illinois Supreme Court rules against "Amazon Tax"

By WEEK Producer

October 18, 2013 Updated Oct 18, 2013 at 10:42 PM CDT

SPRINGFIELD, Ill. -- The Illinois Supreme Court has ruled against the so-called “Amazon Tax” on Internet sales.

The bill, pushed by the Illinois Retail Merchants Association and Senator Dick Durbin, was signed into law two years ago.

Illinois merchants said they were losing money to online, out of state companies which could offer prices which did not include Illinois sales tax.

However, the Illinois Supreme Court, in a six to one decision, said the “Amazon Tax” itself violated a federal decree prohibiting discriminatory taxes on electronic commerce.

The Illinois Retail Merchants Association released the following statement: “It’s disappointing that the Illinois Supreme Court did not address the constitutionality of the issue, but rather erred in its conclusion that the act violated the Internet Tax Freedom act".

The IRMA said Congress needs to pass the “Marketplace Fairness Act”, which would address the various states' tax rates and online sales.

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