Indiana House panel backs online sales tax collection

Published: .
Updated: . and other online-only retailers would have to start collecting Indiana's 7 percent sales tax this summer under a bill endorsed by a state House committee.
The House Ways and Means Committee voted 20-1 on Thursday to advance the bill to the full House. The proposal would start requiring collection of the sales tax in July but would exempt online retailers doing less than $10,000 in business a year in the state.
Bill sponsor Rep. Tom Dermody of LaPorte says the state's current policy under which online retailers don't collect the sales tax gives them an unfair advantage over traditional stores.
Former Gov. Mitch Daniels reached a 2007 deal with Amazon for the company to open Indiana warehouses with the promise that lawmakers wouldn't push for online sales tax collection.

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