Those who think the end is coming for tax-free shopping on Amazon are right – sort of. The reality is that even though Amazon doesn’t collect Illinois sales tax now, customers are supposed to pay it, and there’s a line on the Illinois income tax form so taxpayers can declare it. Sue Hofer of the Department of Revenue says it’s on the honor system, but people do pay.
“We do see people making a good-faith effort to determine what they’ve bought over the year, and recognize that if everybody pays their little fair share, the state’s better off for it,” she said.
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Amazon has announced that it will be opening facilities in Illinois in the coming years, which definitely obligates them to collect tax In addition, but a new law takes effect in January that will require any online retailer with affiliates here, such as suppliers, to collect tax, and that includes Amazon. Those businesses will have to collect “use tax” of 6.25 percent, of which 5 percent goes to the state. The 1 percent of sales tax that ordinarily goes to the city where the sale occurred, and the ¼ percent goes to the county, will be disbursed based on population, rather than on the delivery address.