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Companies Say They’ll Be Hurt By Online Tax

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A Man Uses A Computer Mouse. (AP Photo)

A Man Uses A Computer Mouse. (AP Photo)

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SPRINGFIELD, Ill. (WBBM) – So-called “affiliate marketers” are big business in Illinois, but they say their existence is threatened by what is known as the “Amazon tax.”

As WBBM Newsradio 780’s Dave Dahl reports, the bill calls for the Web-based marketers to collect a sales tax for Illinois.

LISTEN: Newsradio 780’s Dave Dahl reports

FatWallet.com is based in the Rockton near Rockford, and allows users to publish deals and rebates on electronics and other products and services. FatWallet founder Tim Storm says he and his more than 50 jobs are ready to move to Wisconsin if need be.

“I’m not asking for anything other than a veto,” he said.

Such companies, unlike Amazon.com, have a real office in Illinois. They say having to collect a sales tax will cost them their relationships with the Amazons of the world.

Ed Longanecker, executive director of the trade group TechAmerica, has met with Gov. Pat Quinn to discuss the issue.

“Hopefully, the facts associated with how this has worked in other states, understanding that the result will be no different in Illinois, resonates,” Longanecker said.

Longanecker said the businesses that would be hurt by the bill are exactly the kind Quinn said in his budget speech last month that Illinois should be encouraging.

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