Indiana News

E-Tax bill passes Indiana Senate

(Photo Supplied/Indiana News Service)

INDIANAPOLIS, Ind. (Network Indiana): You’re a step closer to paying sales tax on your eBay purchases.

Online purchases are subject to sales tax, but a Supreme Court ruling says the sellers can’t be forced to collect it unless there’s what the court calls a “nexus” to the state. That’s typically meant a physical presence, like Amazon’s Indiana warehouses. Amazon cut a deal with the state in 2012 to begin tacking on sales tax.

Noblesville Senator Luke Kenley’s bill follows a South Dakota law in arguing if you’re a big enough seller, that creates a nexus. Any company with sales in six figures in Indiana or with more than 200 transactions in the state would have to collect the tax.

Currently you’re supposed to keep track of online and mail-order purchases and pay the sales tax on your state income tax, but because there’s no way to track those purchases, that law is essentially unenforceable. Kenley estimates that costs the state $200-million a year, and puts bricks-and-mortar businesses at a price disadvantage with online competitors.

House Speaker Brian Bosma says he supports the goal but hasn’t reviewed the legal argument yet.

Kokomo Republican Jim Buck cast the only “no” vote.

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