INDIANAPOLIS —
Federal legislation that would allow Indiana and other states to collect millions of dollars in unpaid sales taxes on online purchases may be getting closer to reality.
Indiana state Sen. Luke Kenley, the Republican chairman of the state Senate appropriations committee and a key player in the online sales tax issue, said pressure is ramping up on Congress to act.
Earlier this week, both the U.S. House and Senate held committee hearings on online sales tax legislation. They heard bipartisan testimony from leaders of cash-strapped states who said they need a federal law to recoup an estimated $18 billion in revenues lost to online sales that go untaxed.
“The pressure is really beginning to build,” Kenley said. “I think it could happen this year.
Kenley has spent a decade on the issue, working on a multi-state agreement to streamline the much-varied sales taxes that exist across the states. Two bills, one in the House and one in the Senate, would clear the way for states to collect an online sales tax if they sign onto the streamlined sales tax agreement.
Indiana stands to gain millions in tax revenues — estimates range from $77 million to $200 million-plus a year— at a time when it’s phasing out the state’s inheritance tax. State fiscal experts say the inheritance tax phase-out will cost Indiana about $165 million a year in revenue, starting in 2020.
Kenley’s comments echo those made by Democrat congressman John Conyers of Michigan, ranking member of the House Judiciary Committee, which held a hearing Tuesday on the issue. “I think the bottom line is that tax-free sales on the Internet may be coming to an end,” Conyers said.
Both Kenley and Conyers may be optimistic, given the current state of gridlock in Washington, D.C., and the fear among some lawmakers that they’ll be tagged as tax-hikers if they support online sales tax legislation.
Still, a double dose of congressional hearings in one week — plus a rising number of lawmakers from both parties signing on with their support — is a big indicator of progress, Kenley said.
“These are real signposts along the road,” he said.
The online sales tax issue has lingered for years, following a 1992 Supreme Court decision that let most online-only retailers off the hook from collecting state and local sales taxes on purchases made by their customers. The court said it was up to Congress to come up with a fix.
Backers of federal legislation that would allow states to collect the online sales tax include the National Governors Association, and the giant online retailer, Amazon.com, which had been fighting individual states’ attempts to force it to collect the tax.
Amazon.com, struck a bargain with Indiana Gov. Mitch Daniels this year when it agreed to begin collecting Indiana’s 7-percent sales tax on Internet purchases, beginning in 2014 if a federal law doesn’t pass before then. At the time, state fiscal experts said untaxed purchases made online by Amazon customers in Indiana accounted for about $25 million a year in lost tax revenues.
Local & Bistate
Pressure building for online sale tax
- Local & Bistate
-
-
Vigo County Jail Log: May 23, 2013
The following individuals were booked into the Vigo County Jail by area law enforcement on Wednesday and Thursday, based on jail records.
-
Relic from another age: Massive find
A mastodon that lived in the Wabash Valley thousands of years ago is making big news today.
-
Game Over: Financial tightening causes VCSC to drop St. Patrick’s from athletic schedule
St. Patrick’s School athletic teams will not have an opportunity to compete against their Vigo County School Corp. middle school counterparts next year.
-
Katelyn Newell finally at home
After nearly five months, 8-year-old Katelyn Newell finally returned home Thursday evening — with a new heart.
-
Indiana State U. Police officer honored with Artz Award
Thursday was a special day for Indiana State University Police Officer Christopher Heleine in multiple ways.
-
City Council considering three for consultant
Three different tax professionals vied Thursday for a chance to become a “financial consultant” to the Terre Haute City Council.
-
Clay County sheriff warns of bank card scam
The Clay County Sheriff’s Department has received information regarding a scam targeting residents, according to a news release from the sheriff’s department.
-
State Police seek help with Sullivan County homicide
Indiana State Police detectives from the Putnamville Post are seeking help from the public with the nearly six-month investigation into the death of 85-year-old Lowell R. Badger, a rural Sullivan County farmer.
-
Man who attacked Vigo deputy arrested
A Terre Haute man accused of attacking a Vigo County sheriff’s deputy earlier this week is facing felony charges in the Vigo County jail.
-
INDOT to bid final 641 phase
The final construction phase of the 641 bypass is scheduled to let for bids on Dec. 11, according to the Indiana Department of Transportation.
-
District office moves north
The Southwest District office of the Purdue Extension service has been moved north from Vincennes to Terre Haute.
-
Day is done…
The sun sets Thursday evening as seen from south of Terre Haute.
-
Morning update: I-5 bridge collapse caused by truck hitting span
The Washington State Patrol chief says the Interstate 5 bridge collapse into the Skagit (SKA'-jiht) River at Mount Vernon was caused by an oversize truck.
-
UPDATE: I-70 lanes in Putnam County now open
The west-bound lanes of Interstate 70 re-opened Thursday evening after being temporarily closed due to a crash near the Greencastle/Cloverdale exit.
-
22-hospital St. Vincent Health cutting jobs
INDIANAPOLIS — One of Indiana’s largest health systems says it’s cutting an undisclosed number of jobs by June 30 because of increasing economic and competitive pressure on the health care industry.
-
Update: Cleanup from overturned truck in Greene County continues
Fuel spillage from the dump truck hauling gravel that overturned this morning in Greene County at Indiana 54 and County Road 725 East near Ridgeport continues to restrict traffic to one lane.
-
17-pound bone found during Vigo flood cleanup
TERRE HAUTE — Crews cleaning up from Wabash River flooding in Vigo County came across a 17-pound bone that they believe might have come from an ancient mastodon.
-
Duke Energy gives $10K to Wabash Valley Red Cross for Vigo flood relief
Duke Energy is giving $10,000 to the Wabash Valley Red Cross chapter for flood relief from this spring’s heavy rains.
-
I-70 Frye Road overpass contract awarded; construction to begin May 28
The Indiana Department of Transportation has announced the Interstate-70 Frye Road overpass contract was awarded to Halverson Construction Co. Inc. from Springfield, Ill., for $317,166.
-
Banks of the Wabash Festival is more than just yearly entertainment
Pioneers think counterintuitively. Where others see widespread apathy, they focus on the possibility for progress. In a way, the 2013 Year of the River celebration began in the 1970s.
-
Planning session aims to better Terre Haute
It’s not yet clear what will come of it, but dozens of community leaders spent the whole day Wednesday trying to develop a plan – or collection of plans – to make Terre Haute “a better community.”
-
Education funding boost won’t benefit all schools
In the budget bill passed by the General Assembly last month, there is more money allocated for K-12 education over the next two years, but that doesn’t mean every school will get more dollars.
- Day of Action job options open
-
Park Board renames land around Memorial Stadium
Land surrounding Indiana State University’s Memorial Stadium on Terre Haute’s east side has been designated as Veterans Memorial Park, following a unanimous vote Wednesday from the Terre Haute Park Board.
-
Deputy suffers minor injury during incident
A Vigo County Sheriff’s deputy received a minor injury to his hand Tuesday night while subduing a drunken driving suspect who fled behind a North Terre Haute business.
-
Man accused of child neglect gets new trial date
An Oct. 15 trial date has been set for a Terre Haute man arrested in November for child neglect after he and his wife allegedly tied up and confined their adopted children in the family home.
-
Police find meth labs, arrest Pierson Township man
Police uncovered two active methamphetamine labs in southeastern Vigo County on Monday, leading to the arrest of a Pierson Township man.
-
New date set for attempted murder trial
A new trial date has been set for a Terre Haute woman charged with attempted murder.
-
Illinois Senate approves sex education bill
SPRINGFIELD, Ill. — A proposal that revamps sex education in Illinois public schools to include information about contraception and sexually transmitted diseases has cleared the state Senate.
-
Gregg pondering 2nd run for Indiana governor
INDIANAPOLIS — Former Democratic gubernatorial candidate John Gregg is pondering another run at the state's top job, but has yet to make a decision.
- More Local & Bistate Headlines
-
Vigo County Jail Log: May 23, 2013




