4:33 pm
Thu April 18, 2013

Bill to Hasten Start of Indiana Online Sales Tax Collection Stalls in State Senate

Republican state senators in Indiana have blocked a vote on a bill that would force Amazon.com and some other online-only retailers to start collecting Indiana's seven percent sales tax this summer.

The bill, which had cleared the House by a wide margin, was scheduled for a Senate vote Thursday until the Senate Republican caucus decided to have the measure pulled for more negotiations.

The bill would require Amazon to start online sales tax collection in July, six months earlier than under a deal that former Gov. Mitch Daniels brokered with the company last year.

Senate Majority Leader Brandt Hershman says Indiana's reputation with businesses would suffer if the legislature interfered with the Amazon agreement, but the bill's supporters contend the Amazon deal is unfair to traditional retailers who must charge sales taxes.