Indiana retailers criticize tax deal

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There was a backlash at the Statehouse Wednesday over the new agreement between Indiana and which will lead to Hoosiers paying sales tax on their online purchases beginning in 2014. Some rival Indiana retailers aren't happy with the deal.

It seemed like a win-win. Indiana had come to an agreement with Amazon to start collecting sales tax on internet purchases beginning in January 2014.

"He could have cut a deal with Amazon to make this effective now. California has done it," said Grant Monahan, Indiana Retail Council.

Monahan testified wednesday to alter the effective date of that agreement.

"It's two Christmas shopping seasons which as you know are huge for retailing. To have that unlevel playing field for retailers to on that much longer is unacceptable to our membership," said Monahan.

Jeff Kinney is a member of the Indiana Retail Council. Kinney Dancewear is a family business that has been in existence since 1952 and it has collected sales tax from the very first day.

"They should be made to pay just like I do. I have to pay sales tax the 20th of every month. Everyone else should too. It's just the cost of doing business," said Kinney.

When asked about the delay, Amazon said it needed that time to work with the state to try to get federal legislation that would require all internet sales companies to collect sales tax.

"We believe if Amazon is able to collect and we know we are and will be able to when the time comes, they can as well. So we look forward to a federal regime that will draw Ebay into collecting as well as Amazon," said Paul Misener, Amazon.

"I don't get a pass on my taxes until 2014. If they are agreeing to pay the tax then they should pay now," said Kinney.