Senator Greg Walker's bill would have gas distributors collect gasoline sales tax when they deliver shipments to local gas stations.
With the deal, Indiana becomes the fourth state in which Amazon will collect an online sales tax.
Although companies like Amazon.com brought jobs to the state when they built warehouses in Indiana, online sales could also hurt local businesses.
State Senator Luke Kenley said Congress should allow states to collect sales tax from all Internet retailers.
Simon Property Group is suing Indiana because it is not enforcing an online sales tax.
Some estimates suggest collecting internet sales tax could bring as much as $400 million to the state.
The Main Street Fairness Act would bring in millions of dollars in tax revenue currently lost to online retailers.
The circuit breaker has lowered bills on all properties statewide by nearly $500 million.
IRC says the state is losing hundreds of millions of dollars in revenue.
Indiana retailers are pressing legislators to crack down on unpaid sales taxes from internet purchases.