News

Retail industry lobbyists in Indiana push for online sales tax

April 11, 2011

According to The Chicago Tribune, retail industry lobbyists in Indiana are trying to get state lawmakers to pass an online sales tax provision that they claim would result in hundreds of millions of dollars in revenue. 

The Indiana Retail Council and the Alliance for Main Street Fairness held a press conference yesterday in the Indiana Statehouse to ask for legislators’ support in requiring sites such as Amazon.com to pay sales tax.

Businesses are not required to pay sales tax if there is not a physical presence in the state, which Grant Monahan, president of Indiana Retail Council, believes is a tax loophole that removes competition.

"The failure of internet retailers to collect sales tax puts Indiana retailers at a 7 percent disadvantage that is costing the state revenue and brick-and-mortar retailers the chance to grow," Monahan said.

In 2007, Amazon opened its first warehouse under the condition that Indiana wouldn't work to impose an online sales tax. The online company now has two warehouses operating within the state, employing about 1,500 people. 

According to the article, lawmakers were not quick to embrace the proposal. Senate Appropriations Committee Chairman Luke Kenley, R-Noblesville, said he didn't believe overturning the state agreement with Amazon would solve any problems and that a national solution was needed.

"What we need is for all online retailers to remit the sales tax," Kenley said.