Money may be scarce these days. But with a relatively simple shift in policy, the Prairie State could bring in millions of dollars in extra revenue that big corporations take home each year for merely collecting sales taxes.

The way state law is written, Illinois retailers are eligible to keep 1.75 percent of the sales tax revenue that enters their tills. Most states have similar policies, but cap the amount individual businesses can collect. But not Illinois. And that costs us $126 million a year, which is more than any other state in the nation, according to a report released by the Washington D.C.-based group Good Jobs First.

Center for Tax and Budget Accountability director Ralph Martire spelled out the cost of this policy to Crain’s columnist Greg Hinz earlier this week:

“It is frustrating that when our state’s huge, ongoing deficits have forced cuts to human service programs used by the most vulnerable members of society, Illinois continues to lose so much revenue to this practice.”

Sen. James Meeks (D-Calumet City) wants the law changed. He tells Hinz that he’ll introduce legislation to amend it. We tried to catch up with Meeks yesterday to learn more about his proposal, but he wasn’t immediately available.

Among the 26 other states that offer retailers any compensation at all, half cap the amount they can collect. Others set the return rate far lower than Illinois’ 1.75 percent.

The Good Jobs researchers explained the broader impact of this so-called sales tax skimming:

Sales taxes are an integral part of most states’ and cities’ “three-legged stool” of revenue, along with property and income taxes. Allowing a significant portion of that income stream to be skimmed enriches private interests at the expense of essential public services. With the longterm growth of online sales, the problem will only grow worse unless states make prudent decisions now about capping vendor compensation.