April 13th, 2011
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Author: An Internet company says it hopped the Wisconsin-Illinois border (landing on the Wisconsin side) to avoid collecting sales taxes required by a new Illinois tax law.
FatWallet.com, a deal-shopping website, makes its money by contracting with online retailers, such as Amazon.com, who pay it a commission whenever it refers a buyer.
FatWallet.com, previously located in Rockton, Ill., moved just a few miles north to Beloit, Wis. – the two cities actually form a contiguous urban area divided only by the state line.
The company brought with it 54 employees. A story in the Beloit Daily News makes no mention of plans to hire more.
According to the Chicago Sun-Times, FatWallet.com decided to pull up stakes after Amazon.com and other retailers threatened to drop their contracts. The new Illinois law increases sales taxes for online transactions.
Wisconsin has passed no such law. Individual taxpayers are asked to declare online purchases on their state income tax returns but seldom do.
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