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Online sales tax collection passes Indiana House

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Monday, February 4, 2013 - 5:56 pm

INDIANAPOLIS — Amazon.com and other online-only retailers would have to start collecting Indiana's 7 percent sales tax this summer under a bill approved overwhelmingly by the Indiana House.

The bill approved by a 79-18 vote on Monday would negate an agreement between Amazon and former Gov. Mitch Daniels that gave the company until next year to start charging the sales tax.

Republican Rep. David Wolkins of Winona Lake argued against the bill, saying that Amazon met its agreement to open several warehouses in Indiana. Wolkins says forcing the earlier tax collection would hurt Indiana's reputation with other companies.

Democratic Rep. Matt Pierce of Bloomington says Daniels didn't have the authority to allow some companies ignore state law requiring collection of the sales tax.

The bill now goes to the Senate for consideration.