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Sunday, January 05, 2014

Ind. Gov't. - "Amazon.com begins collecting sales tax in Indiana" [Updated]

In case you hadn't noticed...

The AP has a brief story today. A quote:

Indiana was one of three states where Amazon began collecting sales taxes Wednesday on purchases made in 2014. Nevada and Tennessee are the two other states.

Former Gov. Mitch Daniels brokered a deal with Amazon in 2012 for the retailer to begin collecting Indiana’s 7 percent sales tax from Hoosier customers beginning on Jan. 1, 2014.

For background, see this ILB entry from Nov. 8, 2013.

The neighboring Illinois Supreme Court ruled Oct. 18, 2013 that an Illinois "Amazon tax" was pre-empted by federal law. See this ILB post from that date. See also this Oct. 18, 2013 column by Janet Novack of Forbes headlined "Illinois High Court Shoots Down Amazon Sales Tax Law; Will SCOTUS Step In?."

Alice Culp of the South Bend Tribune had this story Jan. 5th, headlined "Amazon Starts Charging Sales Taxes To Indiana Residents." Some quotes:

The new year ushered in a change for Indiana's online shoppers.

The Hoosier state was one of three states to join the 16 whose residents already pay sales tax on Amazon purchases. Nevada and Tennessee are the other two new additions. * * *

[T]he online retailer brokered an agreement with Indiana officials in 2012 to voluntarily begin collecting and remitting sales tax in the state beginning Jan. 1 of this year.

Former Gov. Mitch Daniels' office put out a news release in January 2012, when the agreement was reached, saying state officials estimated sales tax revenue from Amazon would come to about $20 million to $25 million per year. The Department of Revenue declined to comment Thursday on the current estimates, saying it cannot give out information on an individual taxpayer. * * *

In early 2013, an effort to require online-only retailers to collect sales tax in Indiana failed in the General Assembly because Senate leaders thought it would interfere with the Amazon deal.

ILB: No mention of what the "deal" entailed.

Posted by Marcia Oddi on January 5, 2014 11:03 AM
Posted to Indiana Government