Online sales tax policy unfair to small businesses



KPC News

Taxes should not help some parts of the economy grow at the expense of others. But that is what is happening with our current online sales tax structure.

Currently online sellers are only required to collect sales tax on Internet sales to customers in states where their businesses have a “physical presence” — a warehouse, store, office or sales representative in the state.

When the online retailer does not have to collect sales tax, it is the customer’s responsibility to pay the tax; known as a “use tax.” Many Indiana residents are not saving their online sales receipts to complete the “use tax” line on their state income tax return.

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