On Tuesday, the Senate passed House Bill 3659 by a vote of 49-6-3.  Referred to as the “Amazon Tax,” named for the largest online retailer, it would allow the state to collect necessary revenues from online sales and purchases made from out-of-state companies. The legislature is moving aggressively in a push to restore the state’s fiscal health.  Under this proposal, Illinois would generate an additional $150 million in much-needed revenues in our efforts to prevent millions of dollars in cuts to public safety, health care, and education that would occur without action.

House Bill 3659 will help spur economic activity and job growth within the state by leveling the playing field for Illinois’ small businesses that currently compete at a disadvantage with out-of-state companies and retailers.  By keeping Illinoisans’ money in the state, we can invest in our people, improve our infrastructure, and encourage long-term financial stabilization.

Restoring fiscal standing

• Generates $150 million in much-needed new state revenues.
• These new revenues are an important and necessary component in eliminating the state’s economic and fiscal woes.
• Under current state law, Illinoisans who make online purchases must voluntarily report and pay a use tax at the time of filing their yearly income tax returns.
• This bill will guarantee greater compliance with the collection of sales taxes on out-of-state online purchases by Illinois residents by assessing the tax at the point of purchase.

Necessary to maintain vital services

• In the midst of a tremendous budget crisis, we must reign in our budget and put our fiscal house in order.
• This plan would help prevent many cuts to vital programs and services that would otherwise occur without any action.

Competitiveness

• Currently, online retailers are not required to collect a sales tax on purchases made by Illinoisans unless that particular retailer has a physical location in the state. 
• Illinois small businesses will be able to compete on an even playing field with out-of-state companies with the passage of HB 3659.
• Other legislatures nationwide are moving forward to help protect businesses in their respective states.
• By eliminating the competitive disadvantage that Illinois small businesses and entrepreneurs are confronted with, this proposal will spur economic activity and promote job growth in our state.