Illinois/Arkansas Join Amazon Tax Club
After industry successfully blocked any new entrants into the number of states adopting the so-called “Amazon Tax” in 2010, this year features two new entrants – Illinois and Arkansas. Amazon and other online retailers have terminated affiliates in both states. At this time, the Amazon Tax remains in play in several states. In addition, South Dakota has passed the so-called Big Brother law requiring that companies disclose that consumers still have an obligation to pays taxes associated with online sales even if not collected by the retailer. With the addition of these states, nearly 20% of the nation’s GDP is in Amazon or Big Brother states.
In Washington, Senator Durbin (D-IL) has introduced the Mainstreet Fairness Act to create a national online sales tax, but its prospects are dim.
The Amazon Tax and Big Brother laws (as well as Do Not Track proposals) are included in Net Choice’s latest list of awful internet proposals.