Amazon and Overstock.com Cut Ties With Illinois

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SPRINGFIELD, Ill. (AP) – Amazon.com has made good on its threat to cut ties with Illinois affiliates because of a new law requiring the online store to collect sales taxes.

Gov. Pat Quinn’s office said in a statement Friday it would welcome the company back if it abides by the new law. Quinn signed legislation a day earlier that requires online companies to collect sales taxes on Internet purchases if they have any affiliates based in Illinois.

Affiliates are businesses that refer customers to Amazon and get paid commissions on purchases. 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.

Meanwhile, Utah-based Overstock.com will cut ties with Illinois affiliates beginning May 1. Overstock President Jonathan Johnson tells The Associated Press he thinks the law is unconstitutional because his company does not have a physical presence in Illinois.

Copyright 2011 The Associated Press

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