Illinois Gov. Pat Quinn signed legislation March 10
requiring certain Internet merchants collect the state’s sales tax.

The “Main Street Fairness Act,” sponsored by Rep.
Patrick Verschoore (D-Rock Island) and Senate President John Cullerton
(D-Chicago), means online companies who contract with an in-state affiliate
must collect the state’s 6.25 percent sales tax on customer purchases and remit it to
the Illinois Department of Revenue.

In response, Amazon is
threatening to sever its ties with affiliates in Illinois.

“Illinois’ main street businesses are critical to ensuring
our long-term economic stability, which is why they must be able to compete
with every company doing business online in Illinois,” said Governor Quinn.

Jewelers of America hailed the action on Twitter.
In 2010, the organization launched a campaign
for “sales tax fairness” through its “Legislative
Action Center.”

In addition to Illinois, sales tax fairness laws currently exist
in New York, Hawaii, North Carolina, and Rhode Island. They are also being
considered in California, Arizona, Vermont, and several other states.

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