Online sales tax push dies in Indiana Legislature

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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