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Proposal would move up online sales tax collection

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Two lawmakers say they plan to introduce legislation in the new year that would require Amazon.com and other online-only retailers with a presence in Indiana to begin collecting sales tax on July 1, 2013, six months earlier than a deal brokered by Gov. Mitch Daniels last January.

State Rep. Ed DeLaney, D-Indianapolis, said Monday that it's unfair that Amazon and other online businesses aren't collecting the sales tax that businesses with brick-and-mortar stores are required to collect.

"There's no reason to give a tax preference to one part of the retail world and not to the rest. That's what we're doing right now," he said.

DeLaney said he believes the online companies should already be collecting the 7-percent sales tax, and that the legislation he and Rep. Tom Dermody, R-LaPorte, will introduce will clarify that. He said he doesn't believe tax collection should be based on private agreements.

Amazon said last year that it needed two years to get ready to properly collect the state's 7-percent sales tax from customers. Daniels announced in January that he had reached a deal with Amazon that it would begin collecting sales tax from Indiana customers in 2014.

The proposed legislation was announced on Cyber Monday, named for the expectation that it'll be the biggest online shopping day of the year.

"It would mean they would begin collecting the tax before another school year begins or another holiday season begins where the online businesses have a 7-percent advantage," Dermody said. "It would just even the playing field for everyone, and the sooner the better."

Indiana Merchants for Tax Fairness spokesman Grant Monahan said online retailers have a 7-percent advantage by not collecting the tax, which people owe but seldom pay on their own. The group is a coalition of more than 300 small-business owners from across Indiana.

"Retailers don't mind competition in the marketplace; in fact they thrive on it," Monahan told WISH-TV. "But they need competition on a level playing field."

Monahan said a statewide poll found that 69 percent of Indiana residents support "a level playing field" in the collection of sales taxes. A report released last week by the Indiana Fiscal Policy Institute and Ball State University researchers estimates the state "loses" about $77 million a year in sales taxes not collected on Internet purchases.

In March, Indiana House leaders headed off a vote for the state to begin collecting sales taxes from online retailers and override Daniels' deal with Amazon.

The state's current policy dates to a 2007 deal with Amazon for it to open its first warehouse in Indiana with the promise that lawmakers wouldn't push for online sales tax collection.

The AP left a telephone message seeking comment from Amazon on Monday.

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  • a deal is a deal
    I thought Mitch made the deal, how can you try and change it now? Amazon probably employs more than a few Hoosiers (better than some of the deals they have made with companies), so you change the agreement and Amazon leaves....why would you want to see more people unemployed. Honestly, even if they should change it, I will still shop online, no traffic, no parking issues.
  • Tax Fairness
    Where were the tax fairness complaints when the NFL sought and received tax avoidance for the super bowl?
  • Not Working in Illinois
    I'll be interested to see what this legislation actually includes. Maybe we should take a look at why this is NOT working in other states before we continue to push it here in Indiana. Check out this timely post from Brian Littleton, a business owner in Chicago. http://brianlittleton.shareist.com/the-continuing-affiliate-tax-issue-in-illinois/

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  1. First, the Athenaeum is going to have to get past the hurdle with the Lockerbie residents and the agreement that the parcel would be residential. Second, and in my opinion, this prime piece of property should include parking, PLUS, a black box theater(s), some market rate and affordable artist housing and a plan to renovate and reconfigure the second story theater. I would negotiate to add the DeHaan property surface parking lot into the development mix, place a one story surface parking garage on the DeHaan lot on the street level (for the Dehaan tenants use during the daytime) and add a second story to the garage that would become an addition to the current second story theater and then change the direction of the theater by moving the stage across the alley and on top of the DeHaan lot parking. You can add all the stage elements that are currently missing from the Athenaeum stage to make it more attractive for use by Ballet, Opera and traveling productions. Plus, the theater changes would probably help solve some of the soundproofing issues. Alas,it does not seem to be a part of the strategic plan to conduct a study to determine best use of the property. Seems like the current plan is a quick and easy move that ignores the property best use/potential and any strategic property planning for the effect on future generations.

  2. I recall that MSA's pilings are still in the ground and hard to remove. It’s not likely any proposal will include significant underground construction/parking because of this. Start adding 2 floors of retail, 8 floors of parking and 5-10 floors of possible hotel, and/or 10-20 floors of residential, and you are at 30 floors already with possible expansion of all the uses. But then again I could be wrong.

  3. Accoriding to their website there is no deadline to the Do Not Call list. What is this article referring to??

  4. On what planet are they entitled to this largesse from the stockholders? These people make multi-million dollar salaries: Pay for your own personal travel.

  5. It matters because they're already paid enormously fat salaries: Pay for your own personal travel. Being "taxed on it" isn't a valid excuse--so what? They're still being gifted a raft of luxury perks from somebody else's money on top of an enormous, lavish salary.

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