State Can’t Collect Web Purchase Taxes To Fill Budget Gap

SPRINGFIELD, Ill. (CBS) — Illinois has big budget problems, but filling the gap with money from Internet revenue is a plan that just is not working.

As WBBM Newsradio’s Felicia Middlebrooks reports, tax money from Internet sales theoretically could be used to plug the state’s multi-million-dollar budget hole.

LISTEN: WBBM Newsradio’s Felicia Middlebrooks reports

But the idea isn’t exactly catching on.

Crain’s Chicago Business reports taxpayers have only anted up $10.2 million so far, after a reminder was placed on income tax forms asking those who had made Internet or out-of-state purchases to pay up.

But only 4.6 percent of taxpayers complied with the voluntary request, Crain’s reported.

Meanwhile, attempts to collect sales taxes from Internet retailers has hit a dead end.

In March, Gov. Pat Quinn signed legislation requiring online businesses to collect sales taxes on any purchases made from sites such as and, if they have any affiliates in Illinois.

Affiliates are businesses that refer customers to Amazon and get paid commissions on purchases. If a company has no affiliates in Illinois, the state cannot collect taxes from the company.

Soon after the law was passed, Amazon cut ties with its Illinois affiliates. Overstock did the same, Crain’s reported.

Now the state will have to find other means to fix the budget.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

  • Roberta Waker

    Maybe they should cut salaries for the big shots; cut their perks like free insurance, security, cars, airline travel, etc.. There are lots of ways to save money starting at the top; then work your way down to us poor unemployed. Maybe if we weren’t supporting so many ILLEGALS in this state, we wouldn’t have such a shortfall. Wake up, Illinois. Maybe we should merge with another state that isn’t so corrupt or greedy.

    • Tanya Livingston

      Where are the facts, evidence, proof to support your statements about ILLIEGALS?. You comment on just about everything on CBS and it always includes a dig about or against ILLEGALS. My grandparetns came over through SF on the boat at the turn of last century and I am a professioanal. It is tempoarary, massive public deficits are created with high unemployment, lower sales tax revenue. It is simple, actually. If you were employed and the state had surpluse, nobody would even lhink about blaming fat cats and ILLEGALS

  • Chicago Daily Observer » Blog Archive » Surprise, surprise IL Internet Tax a Bust

    […] the state of Illinois–anything to say Dem Gov. Quinn–admits revenues are not up to expectations:State Can’t Collect Web Purchase Taxes To Fill Budget Gap: Crain’s Chicago Business reports taxpayers have only anted up $10.2 million so far, after a […]

  • ismael

    I’ll do everything possible to avoid paying sales taxes on internet purchases. I pay enough state taxes as it is. I do not itemize my taxes and i got hit with a 66% raise in state taxes and an 87% on tollway fees. Democrats are there to spend and raise taxes that’s all they do. They stick their hands in my pockets and rob me of my hard earned money.The people of Chicago make easy money so they don’t care how often their crooked politicians go into their pockets.YES our politicians are crooks everyone knows that.

    • Tanya Livingston

      Don’t take the Tollway. Harlem Ave/12/45/Milwaukee Ave is a free alt. to 294. You can take 53 for 355. Just allocate an additional 2 hours for your commute/ Don’t complain, Road pricing is here and it is all over the country. Roads have never been free anyway. I am happy to pay the few cents for a smooth, safe, easy commute. The Tollways are a god send compared to I-55 or the IKE. Takes are what we pay to live in a free country. Don;t like taxes, live in Greece or Libya.

  • ismael

    So Tanya you didn’t complain about high taxes, just taxes, so you must be a dummy from Chicago. This makes my comment about Chicago people valid. It is o.k. for politicians to take money from Chicagoans. Let me say again I work in a very hot place every day. My shirt is soaking wet 5 minutes after I am there. I work hard for my money and I don’t want to give it away, i just want to pay my fair share. I don’t like being robbed. Do you ?

  • 02K6537

    NCAA Football question – when did they stop playing defense in the SEC? Scores the last two seasons have been absurd

blog comments powered by Disqus
Daily Weather Reports Delivered To You!SIGN UP NOW: Get daily weather reports every morning from meteorologist Steve Baskerville!
CBS Sports Radio RoundupGet your latest sports talk from across the country.

Listen Live