It was bound to happen and now it has. Illinois residents will be required to pay tax on all Amazon purchases beginning February 1st. After going back and forth for years with passing and then revoking the Amazon Nexus law, it seems that there has been a resolution. There is not any concrete information yet to report, but Amazon is planning to build up to three facilities in the state of Illinois (reportedly in the Chicagoland suburbs) that will offer up to 1,000 new jobs. As a result of having a brick & mortar facility in the state of Illinois (which is the entire issue behind the Nexus law), we will now have to pay state tax.
A few things to keep in mind
- We are supposed to be reporting our online purchase taxes anyway, so if you’ve been doing that already, this will be no different
- Amazon will be charging 6.25% tax rather than the 10.25% tax that we see in the store. Amazon is STILL the best option in this arena!
- We’ll probably now get our shipments even faster, so that can’t hurt.
I know that this is a bummer for Illinois residents who order frequently from Amazon (like I do), but this is a conclusion that will likely arrive in all states sooner rather than later. It is only for technical reasons that the “no tax” policy lives on Amazon and eventually our government will make a federal decision. Until then though, we just get to be some of the lucky few who don’t have to add up our taxes to pay the government once per year. Amazon can now do it for us. Find more information here.
Alli is a Chicago based wife and mother of two children. She has turned money-saving into a game and enjoys searching out the best deals to help you save money! Alli shares her insight, tips and up-to-the-minute deals for local and national retailers and brands. Her hope is that you will play the game and learn to save money at the same time!