Senators stalling Indiana online sales tax proposal - 13 WTHR Indianapolis

Senators stalling Indiana online sales tax proposal

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INDIANAPOLIS -

Some key state senators are stalling a bill that would make Amazon.com and other online-only retailers start collecting Indiana's 7 percent sales tax this summer.

The Indiana House voted overwhelmingly last month in favor of requiring online sales tax collection in July, six months earlier than under a deal then-Gov. Mitch Daniels brokered with Amazon last year.

Senate Appropriations Committee chairman Luke Kenley says his committee won't take up the bill and that the state should abide by the Amazon agreement.

Kenley says he understands the frustrations of traditional retailers over the price disadvantage, but that Congress first needs to give states more authority on collecting taxes from online businesses.

The Indiana Retail Council plans to keep pushing the issue through the end of the legislative session in late April.

Hoosiers are already required to estimate how much they spent online and pay the appropriate tax when they file an Indiana tax return. But that's a step that some people may conveniently forget come tax time.

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