Tagged: Amazon.com

Updated 2:12 p.m. March 11, 2011 to include Overstock.com information.

Amazon.com has made good on its threat to cut ties with Illinois affiliates because of a new law requiring the online store to collect sales taxes.

Amazon notified its Illinois partners Friday that it will stop doing business with them on April 15. It calls the tax law "unconstitutional and counterproductive.

Illinois consumers may find themselves paying sales taxes on some Internet purchases under a new state law.

The law says sales taxes must be charged when people buy from online retailers through an Illinois-based partner. For instance, an Illinois business might sell products through Amazon.com.

Online businesses generally don't charge state sales taxes. Illinois customers are supposed to pay it directly to the state, but they rarely do.