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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.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”