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New rules help Illinois collect out-of-state sales taxes

The state of Illinois' Department of Revenue has new rules this year to target the collection of sales taxes from out-of-state businesses. The new rules took effect Jan. 1 expand the definition of out-of-state retailers that must register in Illinois and collect sales taxes.
State lawmakers revised the rules last year after the Illinois Supreme Court ruled that previous rules singled out online sellers, violating federal laws. The new rules dropped the word "Internet" and now cover catalog, mail-order and similar retailers along with online sellers.
Illinois' brick-and-mortar businesses say not collecting the taxes gives out-of-state retailers an advantage.
A National Conference of State Legislatures report found unpaid sales taxes in Illinois accounted for an estimated $1 billion in 2012.
     

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