It does, but companies that are not located here cannot be compelled to collect the tax. Instead, citizens are supposed to voluntarily pay a "use tax". No one does.
This is the same argument that was made against requiring companies like Amazon to collect sales taxes, but that has been going on for a while now (including in Illinois as of this year) and the forecast layoffs and economic disaster have failed to materialize.
OK, I can see that. Seems like a bit of a stretch though. Are you aware of any companies threatening to relocate?