The Illinois Tax Amnesty for internet sales can be considered a failure for Springfield. Apparently tax compliance had doubled, but this can be measured as 4.6% of Illinois taxpayers whom paid $10.2 million. With the honor system failing, we can look for Springfield to try to get inventive, now.
Amazon and Overstock.com refuse to play nice with Illinois. Since online and catalog retailer have to collect sales tax only if they have a physical presence in the state. The state has implemented the rules that recognize local websites that channel orders to Amazon and Overstock to be in-state facilities that are required to collect and pay sales tax. So Amazon and Overstock has been forced to drop these entities and abandon Illinois.
So based upon the actions of Springfield, local businesses have lost money and growth potential thanks to this law, the state has not received the expected tax revenue, and the brick on mortar businesses still feel that they are at a price disadvantage. So it is looking like a typical Springfield win-win-win situation, in theory only.
Since the state is looking for $169 million minimum to the plug the current spending gap. I truly wish this administration would look at cutting waste, trimming state spending; look at some form of cost reduction like every business in the state has had to do to pay for increased fee taxes