Lawmakers stall bill that would make Amazon, other online retailers collect sales tax

State should abide by Amazon deal, Kenley says

INDIANAPOLIS - Some key state senators are stalling a bill that would make and other online-only retailers start collecting Indiana's 7 percent sales tax this summer.

The Indiana House voted overwhelmingly last month in favor of requiring online sales tax collection in July, six months earlier than under a deal then-Gov. Mitch Daniels brokered with Amazon last year.

Senate Appropriations Committee chairman Luke Kenley said his committee won't take up the bill and that the state should abide by the Amazon agreement.

Kenley said he understands the frustrations of traditional retailers over the price disadvantage, but that Congress first needs to give states more authority on collecting taxes from online businesses.

The Indiana Retail Council plans to keep pushing the issue through the end of the legislative session in late April.

The council said Indiana loses $75 million to $125 million in each year in sales tax revenue not collected from online retailers.

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