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State

Online sales-tax ruling could mean nearly $400 million for Illinois, Durbin says

SPRINGFIELD (AP) – Officials say that a U.S. Supreme Court ruling that retailers must collect sales tax from buyers in other states could mean nearly $400 million a year to Illinois.

The high court on Thursday overturned a 1992 ruling that a retailer must have a physical presence in a state to collect tax from buyers in that state.

Democratic Sen. Dick Durbin called the ruling good for Illinois businesses and asked state leaders to use the revenue to create jobs and reduce taxes on working families.

“This is good news for main street businesses in Illinois,” Durbin said in a statement. “This ruling clears the way for our retailers to compete on a level playing field with internet giants.”

Durbin said the projected revenue in Illinois could be more than $380 million.

“I encourage our state and local leaders to focus on creating jobs in our state and reducing the current tax burden on working families,” he said.

Illinois residents have been required to pay a use tax on out-of state online purchases, according to Illinois Department of Revenue Director Connie Beard.

“To be clear, this is not a new tax,” Beard said. She says the court decision will “level the playing field for Illinois brick-and-mortar retailers.”

The tax is 6.25 percent. Local governments will get the share they’re already allotted.

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