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At
a virtual Illinois House hearing Wednesday, lawmakers and
witnesses discussed the Leveling the Field Act that was passed
in 2020. It charges the full state sales tax on businesses such
as Amazon that brick and mortar shops throughout the state have
been paying already. The Illinois law followed the 2019 U.S.
Supreme Court decision upholding a South Dakota law charging
out-of-state sellers sales taxes for in-state sales.
Rob
Karr of the Illinois Retail Merchants Association said that
before the state's new law, Illinoisans were at a disadvantage.
"Prior to Leveling the Playing Field [Act], every business in
Illinois was at a competitive disadvantage compared to anyone
outside of the state and selling into the state," Karr said.
Those outside retailers selling into the state had been able to
avoid paying the state's sales tax.
Brad Cole of the Illinois Municipal League said the new law has
been a benefit.
"We see this as a huge benefit for the state and its local
governments, but we do acknowledge the issue of the COVID-19
pandemic when many retail establishments were closed," Cole
said.
Throughout the pandemic in 2020 and parts of 2021, Gov. J.B.
Pritzker ordered businesses he declared nonessential to stay
closed to the public, or mandated limited capacities, in an
effort to slow the spread of COVID-19.
Cole also discussed how the Leveling the Playing Field Act has
helped the state.
"The Leveling the Playing Field Act has been a substantial
benefit to communities across the state because we have been
able to collect those sales tax dollars," Cole said.
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