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  • State, Amazon.com, reach sales tax agreement

    News Release

    For Immediate Release

    State, Amazon.com, reach sales tax agreement

    INDIANAPOLIS (January 9, 2012) – Governor Mitch Daniels announced today that the state has reached an agreement with Indiana’s largest online retailer, Amazon.com, Inc., to begin collecting Indiana sales tax on internet purchases.

    Indiana will become the fourth state to reach such an agreement with Amazon, but the governor said he will continue to push for federal action to fairly address the issue.

    “The only complete answer to this problem is a federal solution that treats all retailers and all states the same. But for now, Amazon has helped us address the largest single piece of the shortfall, and we appreciate the company working with us to find a solution,” said Daniels.

    According to the agreement between Amazon and the Department of Revenue (DOR), the company will voluntarily begin to collect and remit Indiana sales tax beginning January 1, 2014 or 90 days from the enactment of federal legislation, whichever is earlier. The state will not assess the company for sales tax for other periods.

    Estimates of uncollected online sales taxes are about $75 million each year. Of that, the State Budget Agency and DOR estimate that revenue from sales tax remittal by Amazon would be approximately $20 million to $25 million per year.

    Audio from today’s press conference may be found at:

    Play

    Editor’s note: Paul Misener, vice president, Global Public Policy, Amazon.com, participated in the news conference.

     

     

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    This post was tagged under: General Assembly, Indiana Politics, Luke Kenley, Mitch Daniels, Press Releases

    One Response to “State, Amazon.com, reach sales tax agreement”

    1. LD Weight says:

      I am sure there will soon be an off-shore sight to compete with Amazon if this continues. If the U.S. congress acts (in all there wisdom) and saddles ALL on line retailers with this they will just drive more jobs off shore.
      LD

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