Amazon Drops Illinois Affiliates To Avoid Sales Taxes
SPRINGFIELD, Ill. (CBS) -- Amazon.com has cut ties with its Illinois affiliates in the wake of a new law requiring such online stores to collect sales taxes.
Gov. Pat Quinn signed the legislation on Thursday. It requires online businesses to collect sales taxes on any purchases made from sites like Amazon if they have any affiliates in Illinois.
Affiliates are businesses that refer customers to Amazon and get paid commissions on purchases.
By cutting ties to its affiliates, Amazon can continue selling products to Illinois residents without collecting sales taxes.
Quinn's office said in a statement Friday it would welcome the company back if it abides by the new law.
The sales tax always applied to Internet sales, but individuals -- not online businesses -- were responsible for paying it. Few people did.
Amazon didn't immediately respond to a request for comment.
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