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State Plans To Begin Enforcing Online Sales Tax Law In October

By Associated Press

Posted August 6, 2018

Indiana residents purchasing products online from out-of-state sellers will soon be charged the state's 7 percent sales tax.

The Indiana Department of Revenue plans to begin enforcing the 2017 online sales tax state law on Oct. 1.

The law requires retailers who annually sell at least $100,000 in the state or do business with more than 200 Indiana customers to collect and remit state sales tax. Previously, only businesses with a physical presence in a state had to collect sales tax.

The Legislative Services Agency has declined to estimate how much money the state's general fund could gain once the tax collection begins.

The law was challenged last year and wasn't immediately enforced. The state revenue agency said the lawsuit will likely be dismissed following the U.S. Supreme Court's June 21 ruling on online sales tax.

South Dakota passed a similar sales tax law in 2016. Online companies Wayfair Inc., Overstock.com Inc. and Newegg Inc. sued the state. The high court's ruling in the case has allowed states to expand sales tax collections to businesses that sell online or through the mail.

Retailers can join the Streamlined Sales Tax Registration System to learn how to comply with multiple state sales tax laws, the Indiana Department of Revenue said.

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