in which sate are you ?

If it were me I would argue for a flat, national internet tax somewhere in the middle of all state taxes that can then be divided up among the states. I think it is the easiest solution.States with no sales tax currently, can opt out and thus they get no share of the pie.

Yes, people in lower tax states may pay marginally more for internet purchases but it wont make a difference to online sales overall in my opinion.

Yes, some states will then get a deal on their on-line purchases but not enough of a deal to make buying on-line more enticing over off-line and now states won’t have to worry about compliance (it would be passed off to the feds), just collect a check from the feds.

Then, online sellers have one tax rate to worry about, one agency to remit to and all this headache goes away.

Piece of cake.

I’d be interested in hearing what is said… I’m also in IL… I’ve mailed & emailed reps, sens with no response…

Keep us posted

What kind of facts are you looking for?

Illinois is one of the largest states to basically copy the “nexus” definition of South Dakota (200 transactions, $100,000 annual sales). Problem there for small businesses is that to sell 200 items at $100,000 in SD you actually do have to be a pretty large business, whereas selling 200 items to Illinois residents is pretty easy even for hobby sellers.

Guess I’m saying it would be worthwhile to steer your representative towards a.) the marketplace facilitator model, as used in WA and PA, or b.) a more reasonable threshold that’s proportional to the amount of online traffic a state the size of IL generates.

The flat rate is also a good idea, though probably harder for an IL state rep to take the initiative on. But yes, it’s a good long-term plan too.

Just my two cents. Glad to hear that people are taking these issues to their state/local politicians. Maybe we can ultimately make sense of this sales tax mess before too long!

The simplest way to handle this is

Pass a law allowing Amazon’s Market Facilitator process. This ends it immediately. Amazon collects the money, disburses the goods, and pays us after they sell. We are really just consigning the items. If you went to a consignment store, you could set the price and how many you bring, like we do here. They would collect and pay the tax.

1. There is no congressional action allowing interstate sales tax so no state can compel a company in another to do so. Allowing that would throw our Constitution into the garbage. This does not mean it will not be done. I do not reside in IL and the state has no claim to make me do anything.

2. Have a single tax rate on all items purchased payable to the state government. Allowing each town to set a different rate depending on the items is a nightmare.

The Democrats control IL so I doubt they will do a thing to assist us.

With so many jurisdictions incorporating different tax structures, the cost/time required to comply will simply force many small sellers to close. It will further harm the ability for small businesses to compete against foreign as well as larger competition.

The only feasible way to move forward is for there to be a larger exclusion than $100,000 or 200 transactions per state (200 transactions at an example of $10 per state is simply too small a threshold), or to apply a uniform tax rate upon all internet transactions regardless of destination.

Requiring small companies to report to thousands of jurisdictions is simply too costly.

I think the only hope is to argue for the bipartisan Online Sales Simplicity and Small Business Relief Act of 2018 is the best solution to the problem. It gets rid of the insane quantities some states are putting up (100 transactions) and says you have to be doing 10 million in sales for this to apply. At that point, honestly, sellers should be required to collect and remit sales tax. You’re probably a big enough organization where you have an accountant at that point.

That bill is bipartisan, a rare thing these days, and would alleviate the struggle for 99% of small business owners. It has BY FAR the best chance to pass through congress and get signed by the president, regardless of who control congress next year.

Illinois is so far in debt the definitely will pass this. The sate is in such a mess and can’t grab enough money to fund their public sector debts.

Move to Wisconsin. It is the only solution.