7NEW YORK (Reuters) – Illinois, the U.S. state with the lowest credit rating on Wall Street, has often been chastised for using gimmicks to balance its budget.
Take, for instance, its overly optimistic assumptions about savings, such as a voluntary pension benefit buyout that retirement systems have yet to actually start.
For fiscal 2019, which began July 1, Illinois is counting on an additional $150 million from expanding the state’s sales tax to all internet purchases made by its residents.
It is hardly alone. At least 32 states have passed or are soon expected to pass laws requiring online sellers to collect and remit sales taxes – including about 20 with laws that would cover spending online during the holiday shopping season.
But tax analysts, attorneys and policymakers say these new laws might not give states what they are banking on. States are devising different plans with varying legal and procedural elements – some being rushed out before they are ready – leaving them open to lawsuits from retailers and others.
by Hilary Russ
November 20, 2018
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