Indiana and Amazon Reach Online Tax Deal

By WEEK Producer

January 11, 2012 Updated Jan 11, 2012 at 11:17 PM CDT

Governor Quinn is hoping to strike a deal soon with online mega retailer Amazon.

Tuesday, Indiana became the 4th state to reach an agreement with Amazon for collecting state tax for online sales.

Indiana does have an advantage over Illinois, as the state is home to four distribution centers.

Last year, Amazon eliminated contracts with Illinois affiliates to avoid collecting state sales tax as required by recently enacted laws. The Department of Revenue estimates the state loses out on 153 million dollars annually in uncollected sales tax from online purchases.

Legislation is pending in Congress that would allow the practice of collecting state taxes nationwide. The Marketplace Fairness Act is likely to come up before the end of the year.

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