Retailers Speak Out to Indiana About Internet Sales Tax
- Nov 8, 2011 | Susan McLain
Indiana is still taking discussion about whether or not to require online retailers to collect and remit sales taxes. Recently, Senator Luke Kenley asked Amazon to voluntarily collect sales taxes but has not heard back. Kenley feels there needs to be Federal action on the Internet sales tax issue in order to allow states to require collection duties of online retailers regardless of nexus (physical presence).
However, Amazon does have nexus. It runs four warehouses in the state of Indiana and retailers such as Hhgregg Inc and Best Buy feel it gives an unfair advantage to allow them leniency on sales tax collection duties. Indiana agreed to not require Amazon to collect sales taxes in exchange for placing the four warehouses in the state.
According to the director of Indiana’s Office of Management and Budget, Chris Ruhl, it’s impossible to truly determine the exact amount of uncollected revenue from all online retailers, but he estimated that Amazon would likely bring in $25 million additional tax dollars for the state were they required to charge and collect Indiana sales tax on resident purchases.