House Throws in Towel on Bid to Start Amazon Sales Tax Early
Bricks-and-mortar retailers are conceding defeat in their bid to kickstart Internet sales-tax collections in Indiana, and turning their attention to Washington instead.
Amazon will begin collecting sales tax in Indiana in January under an agreement with then-Governor Mitch Daniels. The Senate refused to consider a House bill to move that date up six months, and Representative Tom Dermody (R-LaPorte) says an attempt to force a vote by slipping it into another bill isn't going to work either.
But the demise of the House bill comes as President Obama begins lobbying the U.S. Senate to impose sales taxes on all Internet sales. Dermody and Amazon will now be on the same side. The online giant is supporting the federal bill so it doesn't have to address the issue a state at a time any more. Other websites, including eBay, are fighting it.
A Supreme Court decision on mail-order businesses makes it difficult for states to enforce sales tax collections from online retailers. Bricks-and-mortar stores complain they're losing business to shoppers who treat the tax loophole as an online discount.
Amazon’s seven Indiana warehouses give it a physical presence in the state, making it the primary target of the House bill.\