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Online sales tax push dies in Indiana Legislature

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An effort to require Amazon.com and some other online-only retailers to start collecting Indiana's 7-percent sales tax this summer has failed in the Legislature.

The House twice voted this session in favor of the requirement. But Senate leaders blocked the proposal because they don't want to interfere with a deal that former Gov. Mitch Daniels brokered with Amazon for it to start collecting the tax starting in 2014.

Rep. Tom Dermody of LaPorte said Friday he couldn't overcome those Senate objections and had to pull the online tax requirements from a compromise version of a bill he sponsored.

The proposal's supporters argue the Amazon deal is unfair to traditional retailers who must charge sales taxes.

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  • Yep, you're ignorant.
    Try reading the article. There's an existing agreement that says Amazon will start collecting the tax in 2014. This bill was intended to renege on that agreement and force Amazon to start collecting tax immediately. Somehow I don't think one year's worth of sales tax would offset the loss of goodwill the state would suffer for going back on its word.
  • Ignorant?
    Maybe I am ignorant, but I thought there was already a law requiring them to collect tax, and that they were given a pass through a "side agreement". If that is the case, why is another law needed? Can't the agreement be cancelled?

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