INDIANAPOLIS -- A lawsuit to force the state to collect sales taxes on online purchases from Amazon.com is long overdue, retail industry insiders said.

Indiana state officials have repeatedly and unsuccessfully tried to convince Amazon to collect the 7 percent sales tax on merchandise shipped to Hoosiers. Simon Property Group filed a lawsuit Thursday on behalf of its mall tenants in an attempt to force the issue.

The suit was filed Thursday in Marion County Circuit Court by Indianapolis-based Simon, the nation's largest mall operator.

Amazon hasn't been collecting the sales tax because of a deal the company made with Gov. Mitch Daniels when it started building its four Indiana warehouses. The state is losing an estimated $400 million in tax revenue annually from online sales. Officials haven’t pressed the tax on Amazon for fear the company would leave the state and take thousands of jobs away.

Grant Monahan with the Indiana Retail Council said local retailers are growing tired of Amazon’s 7 percent price advantage, RTV6's Norman Cox reported.

"(Retailers) have threatened to pull out in Texas and they have not. Their distribution center is still there nine months after they threatened to leave,” Monahan said.

The Simon lawsuit, if successful, could force the state to start collecting that tax. If it happens, it might not be enough to keep Amazon's smaller rivals in business.

Butler University marketing professor Daniel McQuiston said Amazon has undoubtedly driven other retailers out of business.

"What they've gone out of business with is just because Amazon particularly has become such a big behemoth in the whole online retailing industry. You can buy anything you want on Amazon. They will just become bigger and bigger and bigger. Unfortunately, some of the smaller people just can't compete, like Borders."

Experts said the real solution is for the federal government to adopt uniform rules on state sales tax collections.

Senate Appropriations Committee Chairman Luke Kenley said he's hopeful that may finally happen.

"We have a bill that's coming out next week that four Republican senators and four Democrat senators, are going to promote, which shows some bipartisanship, which is an unusual quality in this Congress,” Kenley said.

A Simon Property Group representative said the company would not comment beyond the statement concerning filing the lawsuit.

Repeated calls to Amazon company leaders from RTV6 were not returned.