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Amazon, Indiana Come to Tax Terms

Sales tax will be collected on Amazon purchases to the state.

In the continuing saga of Amazon versus the Internet sales tax, the online retailer has come to an agreement with the state of Indiana.

Purchases from Amazon that are shipped to Indiana will be charged sales tax beginning January 2014. That is, unless the federal government enforces a nationwide law before then.

Indiana’s government estimates the new sales tax will bring in more than $20 million from Amazon alone. If other online merchants also charged sales tax, the state could expect up to $75 million in added revenue each year.

In a press release, Governor Mitch Daniels states he will continue to seek a federal action imposing the tax on all e-commerce transactions across the nation.

“The only complete answer to this problem is a federal solution that treats all retailers and all states the same,” says Daniels. “But for now, Amazon has helped us address the largest single piece of the shortfall, and we appreciate the company working with us to find a solution.”

California may begin sales tax collection in 2012, Tennessee in 2014, and South Carolina in 2016.

About the author

Sarah Brown
Sarah Brown is a freelance writer who writes about e-commerce and small businesses. She recently graduated from Chico State with a journalism degree and is also a budding online entrepreneur, having launched two Web businesses and her own line of handmade products. Opinions expressed here may not be shared by The Online Seller and/or its principals.

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