More out-of-state businesses to pay sales taxes in Illinois

SPRINGFIELD - Illinois Department of Revenue officials say new rules that went into effect this year will help in the collection of sales taxes from out-of-state businesses.

Last year, state lawmakers had to revise previous rules on collecting sales taxes from out-of-state businesses after the Illinois Supreme Court ruled that they singled out online sellers, which is a violation of federal laws.  The word "Internet" was dropped from the rules, causing an expansion in the definition of "out-of-state businesses."

Illinois businesses seem to support the decision, as several business owners say out-of-state businesses have an advantage when they don't have to pay sales tax.  Under the new rules, mail-order, catalog, and other similar retailers, in addition to online sellers, will be required to register in Illinois and collect sales taxes.

According to a report from the National Conference of State Legislatures, it was found that Illinois' unpaid sales taxes accounted for almost $1 billion in 2012.
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