We are extremely disappointed and disgusted that the State decided to pass a law strictly for political gain.
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Rockton, IL (Vocus/PRWEB) March 14, 2011
The Internet Tax Bill (HB 3659) was signed into law by Illinois State Governor Quinn Thursday, March 10. The new state law, which goes into effect on July 1, 2011, will result in a significant loss of revenue for many affiliate marketers like FatWallet, forcing them to consider relocation to states like Wisconsin.
Leaving the state will have an immediate impact on FatWallet employees and the local community. FatWallet, currently recognized as the #20 best small business to work for in the America (GPTW), employs over 50 local citizens. Most refer to the Rockford regional area as home. FatWallet and the FatWallet Charitable Foundation actively support the communities in which their employees reside with generous yearly contributions to numerous local organizations and sponsorships.
Statement from Tim Storm, Founder and CEO of FatWallet.com:
“We are extremely disappointed and disgusted that the State decided to pass a law strictly for political gain. This law will not create any significant revenue for the state, and is certainly driving jobs out of Illinois. We have been a proud supporter of the community in education and entertainment, and we regret that we will not be around to continue to support such activities.
As negotiations are ongoing, we will not be disclosing any relocation plans at this time other than our plans to move operations out of the state of Illinois.”
As a popular online shopping resource for millions of savvy consumers, FatWallet’s mission is to serve consumers with knowledge, value and guidance for making better money-saving decisions. FatWallet works closely with hundreds of merchant partners like HP, Dell, Sears, and WalMart to publish exclusive offers, money-saving coupons, and deep discounts featuring cash back rewards. The well-known FatWallet forums represent the pulse of FatWallet and an evolving online community where smart consumers gather to share and learn since 1999.
Currently recognized as One of the 50 Best Small and Medium Companies to Work for in America (2010-GPTW), FatWallet and the FatWallet Charitable Foundation are proud to actively support the communities in which our employees reside with generous yearly contributions to numerous local organizations and sponsorships. When we all share, everyone wins.
The Internet Tax Law (HB 3659) will require internet retailers to collect Illinois sales tax from all purchases made in the state. Because many internet retailers (Amazon, Overstock) do not have a physical presence in the state, the bill taxes them via the referring affiliate marketers that have a presence (nexus) in Illinois. Amazon and many other retailers will discontinue all relationships with current Illinois affiliate partners resulting in a significant loss of revenue.
States that have passed similar laws (New York, Colorado, North Carolina and Rhode Island) have yet to see significant increases in collecting additional tax revenue. Fifteen other states have rejected similar legislation.