Local businesses refuse sales tax loophole

Not just a matter of morality, local businesses explain why they won’t join online retailers in order to skirt around paying sales tax

By Gabe House, Correspondent

Local businesses and the Greater Springfield Chamber of Commerce (GSCC) are seeking a level playing field with online retail giants such as Overstock.com and Amazon.com over proper sales tax collection and remittance.

The average Illinois consumer rejoices in not paying sales tax through online storefronts belonging to Amazon and others of similar ilk. But that sales tax doesn’t just vanish; it’s still waiting to be paid, and when Amazon doesn’t directly collect it, the responsibility falls on the consumer to self-report it.

Illinois retailers, meanwhile, are legally obligated to collect sales tax from their customers upfront at the time of purchase. This occurs regardless of where the transaction takes place, whether it be in a brick-and-mortar store or through an Illinois business’s website.

As a realtor would say, it all comes down to location, location, location.