Illinois Internet sales tax legislation has finally been formally introduced and has been sent to the Assignments Committee. Illinois is one of those states that has been on our watch list. In fact, a glance at our December Nexus Legislation map shows them listed as high risk and we also spoke about them on our Affiliate Advocacy Nexus Legislation webinar back in September.
The Illinois Internet sales tax is included in SB 3353 and is sponsored by Senator Jeffrey M. Schoenberg, the Assistant Majority Leader. His committees assignments include Committee of the Whole; Financial Institutions; Appropriations I (Vice-Chairperson); Appropriations II (Vice-Chairperson); Public Health; Revenue; Revenue Subcommittee on Prop. Taxes; and Subcommittee on Amendments.
Provides that a retailer or serviceman is presumed to be soliciting business through an employee, independent contractor, agent, or other representative if the retailer or serviceman enters into an agreement with a resident of this State under which the resident, for a commission or consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer or serviceman, if the cumulative gross receipts from sales by the retailer or serviceman to customers in the State who are referred to the retailer by all residents with this type of an agreement with the retailer is in excess of $10,000 during the preceding 4 quarterly periods ending on the last day of February, May, August, and November. Provides that the presumption may be rebutted by proof that the resident with whom the retailer or serviceman has an agreement did not engage in any solicitation in the State on behalf of the retailer or serviceman that would satisfy the nexus requirement of the United States Constitution during the 4 quarterly periods in question.
As always we will monitor this legislation as it moves forward. Watch here for further updates and to learn how you can best prepare.
No matter which state you live in, you need to prepare.
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