GOP senators block Indiana online sales tax proposal - 13 WTHR Indianapolis

GOP senators block Indiana online sales tax proposal

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Republican state senators have blocked a vote on a bill that would force and some other online-only retailers to start collecting Indiana's 7 percent sales tax this summer.

The bill that cleared the House by a wide margin had been scheduled for a Senate vote Thursday until the Senate Republican caucus decided to have the measure pulled for more negotiations.

The bill would require Amazon to start online sales tax collection in July, six months earlier than under a deal that former Gov. Mitch Daniels brokered with the company last year.

Senate Majority Leader Brandt Hershman says Indiana's reputation with businesses would suffer if the Legislature interfered with the Amazon agreement.

The bill's supporters say the Amazon deal is unfair to traditional retailers who must charge sales taxes.

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