Couponcabin scott kluth6/10/2023 Meanwhile, the sales tax battle continues on other fronts too. In 2009, an Amazon measure was vetoed by then Governor Arnold Schwarzenegger, a Republican. According to a California press report, with a new Democratic governor now installed, legislative leaders there are considering passing an Amazon bill again. Illinois likely won’t be the only state considering a new Amazon law this year. The bill is supported by Illinois' bricks and mortar merchants. He said Quinn’s office had at least expressed a willingness to listen to Internet merchants’ complaints. Kluth complained that only 30 hours passed from the time the Illinois bill was introduced in the Senate (as a substitute for a House bill) to the time it reached Quinn’s desk. But some Groupon offers do come from on-line only sellers, who would presumably be required to start collecting sales taxes from Illinois residents since they get business from, and pay commissions to, Groupon. (According to ComScore, Groupon had 10 million unique visitors in November.) When Groupons are redeemed at local merchants, those merchants are responsible for making sure sales taxes are paid. Kluth says that half of CouponCabin’s participating merchants, representing a third of its sales, don’t now collect sales taxes from Illinois residents and would likely stop doing business with the company if Quinn signs the law and CouponCabin doesn’t move.Ī spokeswoman for Chicago-based, said the social couponing leader is still studying the Illinois bill and hasn’t yet taken a position on it. Merchants pay CouponCabin a percentage of sales (Kluth says it ranges from a quarter of a percent to as much as 4%) when an item is sold using a CouponCabin sourced promotion. “I can see Indiana form the roof of our business,’’ said Kluth, who is a long time resident of Chicago and previously ran .ĬouponCabin, which ComScore reports had 8.8 million unique visitors in November, aggregates coupon codes for both traditional bricks and mortar retailers (including Target and Wal-Mart) which do charge sales taxes on Internet sales and for on-line merchants (including ) which don’t. Meanwhile, Scott Kluth, Founder and President of Chicago-based, told Forbes today that he would move his seven-year-old business and his 48 employees across state lines if Quinn signs the bill. Amazon has appealed that decision and is seeking to take the issue directly to New York’s highest court.)Īfter the Illinois law was passed yesterday, Amazon immediately fired off an e-mail to Illinois members of it “associates program” threatening to boot them from the program, which pays them marketing and referral fees on sales, should Quinn sign the bill. (In November, a New York State appeals court rejected Amazon’s claims that the law was on its face, unconstitutional, but remanded the case to a lower court for further factual findings to determine whether the law, as applied, might violate the constitution. Passed in 2008, it requires out-of-state retailers who do $10,000 or more a year of business through New York state affiliates to collect its sales taxes. (On-line buyers are still legally obligated to pay the sales tax to their own states, but few do.) The Illinois bill is modeled on New York’s so-called Amazon law. Supreme Court precedent, only retailers with a physical presence (“nexus” in taxspeak) in a state are required to collect that state’s sales or use tax.
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