Indiana In-Fighting About Amazon Deal
- Internet sales tax
- Mar 23, 2012 | Susan McLain
Indiana Governor Mitch Daniels reached an agreement with Amazon in January to not require sales tax collection duties of the Internet retailer until 2014. However, Indiana merchants have disagreed with that action. Why, when other states are making deals until 2013, do they have to wait until 2014?
The GOP Governor has found the Republican family full of strife as the News-Sentinel reports, “[s]ome Republican legislators were ready to break with the GOP governor over the agreement Daniels announced in January, arguing that online retailers shouldn’t continue to have a competitive advantage over traditional stores that must charge customers the 7 percent state sales tax.”
Indiana House leaders were found to be heading “…off a vote on a push for the state to begin collecting sales taxes from online retailers and override [the] deal Gov. Mitch Daniels reached [with Amazon].”
The current agreement honors previous policy made with Amazon when it opened its first warehouse in Indiana. The “…promise that lawmakers wouldn’t push for online sales tax collection” was part of that deal in 2007. January’s agreement amended that deal to have the Internet giant and other online resellers begin collecting in 2014. House Republicans, at the encouragement of Indiana merchants, have been willing to strive against that deal and modify the time to start collecting to January 2013.