Amazon.com Agrees to Voluntarily Collect Sales Tax in Indiana, beginning 2014

As per a news release posed on Indiana Government’s official website, the Indiana Department of Revenue and Amazon.com have reached an agreement whereby Amazon.com will start collecting state and local sales tax on state resident’s web purchases. Such a collection of sales tax will start from the earlier of 3 months from enactment of a federal law regarding collection of sales tax, or, if no such law is enacted by Dec. 31, 2013; by January 1, 2014. 

Governor Mitch Daniels said while he believes that the real solution to sales tax issue is “a federal solution that treats all retailers and all states the same” but for now, this agreement allows Indiana to address a large short fall. 

How large? The annual uncollected sales tax for internet purchases in India is estimated to be about $75 million. Of that, it is estimated that Amazon’s annual collection would amount to 20 to 25 million dollars. 

Audio from the press conference may be found at: 
http://www.in.gov/gov/files/Audio/2012/010912audio.mp3 


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