STATEHOUSE – House Bill (HB) 1007, authored by State Representative Tom Dermody (R-LaPorte) passed out of the House with a 79 to 18 vote and will now go to the Senate for further consideration.
If enacted, the bill will move the online sales tax collection date forward to July 1, 2013. According to Indiana Fiscal Policy Institute and the Ball State University Center for Business and Economic Research (2012), the bill would generate roughly between $39.6-114.3 million in revenues annually –boosting the Hoosier economy.
“This bill is about fairness and leveling the playing field between brick-and-mortar stores and online retailers that have a physical location in the state,” said Rep. Dermody. “Moving the collection date forward six months will generate millions in state revenues, making a sizable difference for Hoosier businesses during the back-to-school and holiday seasons.”
HB 1007 resulted from legislation drafted by former State Representative Jeff Espich in the 2012 session. The former lawmaker authored HB 1119, a deal struck between Indiana lawmakers and online retailers. HB 1119 required retailers like Amazon, with a physical presence in the state, to add Indiana’s 7 percent sales tax on purchased goods. The bill passed with bipartisan backing and an effective collection date of Jan. 1, 2014.
Since the agreement was made, four other states settled identical arrangements, each with an earlier collection date. Two of those states, Texas (July 2012) and Pennsylvania (Sept. 2012) are currently collecting sales tax while Arizona (Feb. 2013) and New Jersey (July 2013) will collect it soon.
“With Amazon agreeing to earlier collection dates with four other states, I believe it is feasible to move our state’s collection date forward as well,” said Rep. Dermody. “I have met with representatives from over 300 statewide brick-and-mortar retailers supporting this bill because it represents fairness and a level playing field for businesses to compete equally in our free enterprise system.”
Visit www.in.gov/legislative for more information about HB 1007.