Indiana, Amazon Reach Internet Sales Tax Agreement

by Rick Howlett on January 9, 2012

Amazon.com will begin collecting Indiana’s 7 percent sales tax from customers in 2014.

Gov. Mitch Daniels and an Amazon executive announced an agreement today that could lead to Indiana collecting at least $20 million more in annual sales tax revenues.

“They agree with us that all those who sell remotely—internet, catalogue or otherwise, ought as soon as possible to be collecting what is duly owed, taxes owed Indiana and most other states,” Daniels said.

The agreement follows a lawsuit by Indianapolis-based shopping mall owner Simon Property Group against the online retail giant and a lobbying push by traditional retailers to end what they call an unfair price advantage for all online retailers. The suit was dropped today.

The deal with Seattle-based Amazon doesn’t include any other companies, but Daniels says the state is asking Congress to require all online businesses to collect state sales taxes.

Estimates on Indiana’s uncollected online sales taxes range from $75 million to $250 million per year.

(Reporting for this story also came from the Associated Press)

 

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