CHICAGO, March 10, 2011 /PRNewswire/ -- Illinois Gov. Pat Quinn today signed the so-called Internet tax bill (HB 3659), which requires out-of-state merchants who advertise on websites based in Illinois to collect taxes from all Illinois customers.
The new tax law relates to out-of-state merchants like Amazon.com and Overstock.com that do not have a physical presence in Illinois but have relationships with Illinois advertisers and publishers like CouponCabin.com. Under the provisions of the new law, these merchants are deemed to have a presence (nexus) in Illinois and are therefore required to collect Illinois sales tax.
In response to the Governor's approval of HB 3659, Scott Kluth, CEO of CouponCabin.com, issued the following statement:
"The Governor's approval of HB 3659 is deeply disappointing. As a result, Illinois will lose jobs, many thriving businesses like CouponCabin and other affiliate marketing firms will be forced to move to other states, and most important, this law will not generate the tax revenue Illinois thinks it will collect.
"Those of us who opposed HB 3659 made every effort to persuade the Governor that it is a misguided attempt to bring 'fairness' and new revenue to Illinois by requiring out-of-state merchants who advertise on websites operated in Illinois to collect sales taxes from Illinois customers.
"The reality is that just like other states that approved similar legislation, Illinois will not collect additional tax revenue. Instead, the merchants who would be affected by this law will simply sever their contracts with Illinois affiliate advertisers, as they have done in every other state. The only result of this law is that high-growth businesses like CouponCabin will be driven out of Illinois to maintain their relationships with out-of-state merchants.
"We support efforts to find a solution in Illinois that could correct the damage HB 3659 will cause. We will also continue to work within our industry toward a national solution to these tax issues that would enable our businesses to continue to grow and create more jobs, no matter where they are located.
"In the meantime, CouponCabin is actively exploring moving to Indiana. It's a shame we have to consider leaving our longtime home in Illinois, but we will do what is best for our business."
CouponCabin.com offers online coupon codes, printable coupons, grocery coupons and local coupons without requiring its users to share any personal information. The site has grown from 150 stores and 1,000 offers in 2003 to 3,000+ online stores with more than 150,000 offers. CouponCabin.com offers live chat help and a weekly newsletter highlighting the latest top deals. The average CouponCabin.com shopper spends 80 seconds on the site and saves $19 per order. CouponCabin.com™ shoppers have clicked 208,000,000 coupons and deals since launching in August 2003. For more information, please visit http://www.CouponCabin.com.