Amazon.com begins collecting sales tax in Indiana

Amazon.com has begun collecting sales tax on purchases Indiana residents make through the popular online retailer.

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 Jan. 1, 2014.

A push by Indiana lawmakers to require online-only retailers to collect sales tax in Indiana failed last session because Senate leaders thought it would interfere with the Amazon deal.

Democratic state Sen. John Broden of South Bend tells the South Bend Tribune he feels online retailers should not get preferential treatment over traditional retailers.

Amazon warehouses in Indianapolis, Plainfield and Whitestown, and in Jeffersonville in southern Indiana.

IBJ contributed to this story.

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