Wednesday, December 4, 2013

Times Reports Online Shoppers Might Owe State Use Tax on Cyber Deals

From the Northwest Indiana Times:

The Indiana Department of Revenue is reminding Hoosiers who scored Cyber Monday deals that state tax must be paid for online purchases, even if the merchant doesn't charge it.

"If you make a purchase and the online or catalog retailer does not collect Indiana's 7 percent sales tax, you are required by law to pay that same 7 percent as a use tax," said Bob Dittmer, spokesman for the tax collection agency.

Use tax is reported on the individual income tax form due in April. Dittmer said Hoosiers should total their online purchases for 2013, calculate 7 percent of that amount and pay the tax owed.

Last year, 28,853 of the state's 3.1 million individual income tax filers paid use tax. Collections totaled $1.9 million.