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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. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  2. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

  3. Coming from her background,she should be used to those kinds of advances! Menard probably figured it was ok to tuck a buck!

  4. I'm still waiting for the list of available, high quality apartments in the Village.

  5. This criminal masquerading as a lawyer obviously has serious issues. He’s been proven by his own testimony to be a pathological liar and probably has a personality disorder as he seems to be constructing a reality around himself. He places no value on truth, honesty or loyalty as evidenced by what he has done to his clients and his own family. And by the demands and lies he has made in court, it is evident he feels entitled to do and say whatever suits his purpose and everyone else is expected to nod obediently and believe him because he is, after all, Bill Super Lawyer; or BS lawyer for short. This millionaire wanna-be no longer owns anything of value; he squandered it and put everything he had into foreclosure. He has no money, house, car, boat or vacation home left to show for what he earned or what he stole. He’s just another loser without morals who will be doing time. I’m certain all of his courtroom shenanigans are antagonizing his poor victims. As Lamar said, his behavior and claims in court have been outrageous. The judge needs to be more than concerned; he needs to be judicial and end this nonsense.

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