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Supreme Court hands a win to Illinois communities, Main Street retailers

30436737336 4bc59f3a5c bSPRINGFIELD – Out-of-state online retailers will have to pay their fair share of local sales taxes – just like local companies must do – if they want to do business in Illinois, according to a U.S. Supreme Court ruling today that garnered praise from State Senator Cristina Castro.

“Times are different now, and a lot of people do their shopping online. It is important that out-of-state businesses are held accountable to their share of state revenues,” said Castro, an Elgin Democrat and the sponsor of a successful bipartisan measure that was contingent upon today’s ruling. That plan was incorporated into the state budget that was signed into law June 4.

Previously, out-of-state e-commerce retailers do not have to collect a sales tax, a practice that undercuts local retailers and denies revenue for local needs, such as road, bridge and sewer repairs.

“Out-of-state corporations have been gaming the system for a long time, with alarming consequences for cities like Springfield, Decatur and small towns all over the district I represent. We’ve watched storefront after storefront close and retail workers sent to the unemployment line,” said Manar, a Bunker Hill Democrat who has met with local small business owners and listened to their concerns about this issue.

“While online shopping is a wonderful convenience for rural consumers and businesses, it can also be a pox for many of the retailers we rely on to support our towns,” he added. “I’m talking about the moms and the pops who struggle to compete with faceless corporate giants that always manage to undercut them online because they get to play by a different set of rules.”

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