Despite strong
support from Indiana House lawmakers, online retailer Amazon likely won’t be forced to collect sales taxes from Indiana purchases six months earlier than planned.
support from Indiana House lawmakers, online retailer Amazon likely won’t be forced to collect sales taxes from Indiana purchases six months earlier than planned.
House and Senate lawmakers are at an impasse over a bill that would retract a deal former Gov. Mitch Daniels made with Amazon in 2012. Under pressure from brick-and-mortar businesses -- and a lawsuit filed by Simon Property Group against the state -- Daniels and Amazon agreed the company would voluntarily collect the state’s 7 percent tax in 2014.
in 2014.
The Indiana House, though, rebuked that deal by overwhelmingly passing a bill that would require Amazon to begin collecting taxes July 1. Despite that support, Sen. Luke Kenley, R-Noblesville, refuses to hear House Bill 1007 in the Appropriations Committee. He chairs that panel, and it’s his call whether to hear the bill.
Kenley believes the legislation unfairly targets Amazon while ignoring other internet retailers like eBay. Amazon, he said, already has agreed to begin collecting sales taxes, and the state should honor that pact.
, and the state should honor that pact.
Kenley agrees with House lawmakers that online companies like Amazon and eBay have an unfair sales advantage to brick-and-mortar Indiana businesses by not being required to collect state sales taxes. Kenley, though, believes Congress must enact national change. And Indiana House lawmakers’ efforts, he said, would be better directed toward Congress.
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