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Indiana House rejects date change for online sales tax

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Thursday, January 31, 2013 - 2:38 pm

INDIANAPOLIS — The Indiana House has rejected an attempt to delay when Amazon.com and other online-only retailers might have to start collecting the state's sales tax from customers.

House members in a voice vote Thursday kept July 1 as the date when online retailers would have to start charging Indiana's 7 percent sales tax. That would be six months earlier than planned under a deal former Gov. Mitch Daniels brokered with Amazon.

Republican Rep. David Wolkins of Winona Lake argued the tax requirement shouldn't start until Jan. 1 because the state has an obligation with Amazon.

Republican Rep. Tom Dermody of LaPorte says the Legislature wasn't part of that agreement and the deal is unfair to traditional retailers who must charge sales taxes.

The House could vote on the bill next week.