SPRINGFIELD, Ill. (AP) -- The president of Overstock.com says the online retailer will cut ties with its Illinois-based partners beginning May 1.
Utah-based Overstock joins Amazon.com in taking action to avoid collecting sales taxes under a new Illinois law.
Overstock President Jonathan Johnson tells The Associated Press he thinks the law is unconstitutional because his company does not have a physical presence in Illinois.
The law applies to Internet companies that have Illinois affiliates -- businesses that refer customers to Overstock or Amazon and then collect a commission. National companies must collect sales taxes on all Illinois sales if they have any Illinois affiliates at all.
Johnson says many Illinois affiliates tell him they plan to move to Indiana to maintain relationships with Overstock.com.
(Copyright 2011 by The Associated Press. All Rights Reserved.)