SALT Report 1180 – Representative Dave Winters has introduced a bill in the Illinois House that would repeal the use and service use tax collection responsibilities for out-of-state sellers that have click-through nexus with the state. The changes would be effective 30 days after the amending bill becomes law.
If passed, House Bill 3869 would void Public Act 96-1544, the Use Tax Act and the Service Use Tax Act. The new bill removes the provisions that require online retailers to collect sales tax on purchases made by Illinois customers if the retailers used affiliate advertisers with a physical presence in Illinois.
Currently, online retailers must now collect the 6.25% Illinois sales tax on products sold to customers due to their advertising affiliate’s in-state presence. Retailers that have no office, store, property, employees or other physical presence in Illinois, and retailers who do not have physical nexus in the state are not obligated to collect Illinois sales or use taxes on retail sales to Illinois consumers.
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