Indiana Senator Calls For Internet Sales Tax

Some estimates suggest collecting internet sales tax could bring as much as $400 million to the state.

Amazon

Photo: Doc Searls (Flickr)

Indiana currently does not tax online sales because of a deal it made with Amazon when the company moved its warehousing centers to the state.

A state senator is calling on a legislative committee to help lobby Congress for a new policy that would force retailers to collect sales tax for online purchases.

Currently, most retailers with physical locations in the state are the only ones charged sales tax on internet transactions under nexus laws. But while online retail giant Amazon.com has physical locations in Indiana, the state does not collect sales tax from them because of an agreement between the company and the governor reached when Amazon moved its warehousing centers to Indiana.

Noblesville Senator Luke Kenley says the law should not pick and choose among individual companies.

“I try to stay focused on the bigger problem which is that all retailers need to remit sales tax,” he says.

Estimates suggest collecting internet sales tax could bring in as much as $400 million in revenue to the state, but if all states do not charge e-sales taxes, some lawmakers worry Amazon could move its warehouses elsewhere.

Kenley says even though the online sales tax issue is being advanced in Congress, there is still a major hurdle.

“The biggest obstruction with that is a concern on some people’s part that this is a new tax,” he says. “It’s not a new tax. it’s a tax that’s already owed.”

There are two bills in Congress, one in the House, one in the Senate, under consideration.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Business & Economy Stories

Recent Videos

Find Us on Facebook