A bill authored by Rep. Tom Dermody, R-La Porte, will help level the playing field for retailers who maintain storefronts in La Porte County by requiring online retailers with a physical presence in the state to begin collecting Indiana’s 7 percent sales tax on July 1.
The change would take place six months earlier than initially planned.
Dermody’s bill, which now moves on to the Senate, could generate roughly $36.6 to $114.3 million in revenues for the state beginning this summer, which is another positive aspect to the legislation.
According to Dermody’s office, the bill resulted from legislation drafted by former Rep. Jeff Espich in the 2012 session, who struck a deal with online retailers that required them to add the 7 percent sales tax with an effective date of Jan. 1, 2014.
Texas, Pennsylvania, Arizona and New Jersey, four other states with identical bills, had earlier collection dates so Dermody decided to see if Indiana’s date could be moved up too. This would keep the Hoosier State competitive with other states.
The House agreed with him. We hope the Senate agrees too.
“This bill is about fairness and leveling the playing field between brick-and-mortar stores and online retailers that have a physical location in the state,” said Rep. Dermody. “Moving the collection date forward six months will generate millions in state revenues, making a sizable difference for Hoosier businesses during the back-to-school and holiday seasons.”
Moving up the deadline is a good idea for Indiana and for the brick and mortar retailers. Dermody’s idea to move up the deadline is a good one.
http://www.heraldargus.com/articles/2013/02/07/news/opinion/doc5112fc40e5944132867624.txt
