(Indianapolis, Ind.) - Amazon.com would begin collecting and paying Indiana’s seven percent online sales tax sooner rather than later under a bill that passed the state House Monday.
Under an agreement reached last year between the online retail giant and former Governor Mitch Daniels, Amazon will begin paying the state sales tax in 2014. However, that wasn’t soon enough for many state lawmakers.
The House voted 79-18 to approve a bill that would require all online-only retailers with a physical presence in Indiana to begin collecting sales tax on July 1, 2013, the Associated Press reports. Amazon operates five warehouses in the state.
If it becomes law, the legislation would override Daniels’ agreement. Some representatives who voted against the bill say changing the state’s deal with Amazon could harm Indiana’s reputation with businesses.
"If I were the CEO of a company looking at Indiana, I'd say 'Why should I believe you?'" said Rep. David Wolkins (R-Winona Lake).
The legislation now heads to the Senate, where its prospects are not as certain.
A 2011 study by the Indiana Fiscal Policy Institute says Indiana loses about $77 million in revenue from un-taxed online sales.