Ind. Senator Wants State To Adopt Online Sales Tax

An Indiana lawmaker wants to adopt an online sales tax, but congressional action may first be necessary.
by | October 20, 2011

An Indiana state senator is making a big push for the state's right to tax online sales, the Associated Press reports, but such power would require action by the Congress.

State Sen. Luke Kenley said he would make his pitch to state lawmakers this week, estimating an online sales tax could bring up to $400 million into the state's coffers. He also stressed that the tax would level the playing field between physical stores and their online counterparts, according to AP.

"Our bricks and mortar retailers are being put at a huge disadvantage in this system," Kenley said.

Indiana has a 7 percent sales tax on most goods, the new agency reports. Indiana Retail Council President Grant Monahan told AP that state legislators could levy a sales tax against online retail giant Amazon.com without any congressional action because the company operates distribution centers in the state. A spokeswoman for Amazon told the news agency the company would prefer that Congress address the issue rather than individual states.

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