By Mike Perleberg
(Indianapolis, Ind.) - The new year is starting with a big change for Amazon.com online shoppers in Indiana.
The online giant began charging Hoosiers a seven percent sales tax on January 1. Indiana, Nevada, and Tennessee joined 16 other states in collecting state sales tax on online purchases through the Internet’s largest retailer.
Kentucky is among the states already collecting taxes from Amazon purchases. Ohio is not.
Online retailers don't have to collect sales tax on purchases by residents in states where they don't have a physical presence. However, Amazon does have two warehouses in Indiana. They are located in Plainfield and Whitestown.
In January 2012, Amazon reached an agreement with then-Governor Mitch Daniels to begin collecting and paying the sales tax to Indiana starting in 2014. Past state estimates have shown that Indiana could collect as much as $25 million a year in tax revenue from Amazon purchases.
Some customers say paying the seven-percent tax is still more convenient than battling crowds at retail stores.
REALTED STORIES:
Amazon, Indiana Reach Sales Tax Agreement