Indiana shoppers will soon pay online state sales tax - wave3.com-Louisville News, Weather & Sports

Indiana shoppers will soon pay online state sales tax

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Indiana estimates Amazon makes up $20 million to $25 million in unpaid sales tax. Indiana estimates Amazon makes up $20 million to $25 million in unpaid sales tax.
Chuck Mattingly Chuck Mattingly
Joe Thompson Joe Thompson

JEFFERSONVILLE, IN (WAVE) - No matter how small or how big your purchase, if you live in Kentucky, you pay Kentucky's 6 percent sales tax on www.amazon.com.

Just over the Ohio river in Indiana customers who purchase on Amazon don't have to pay state sales tax.

"It puts us at a disadvantage obviously because people are trying to cut corners wherever they can so if you're going to save 7 percent on your order you're certainly going to go online first and see if you can get what you want," Horner Novelty owner Chuck Mattingly said. "That just cuts out guys like us who have an investment here in town."

He said they try to help customers get the best prices, but sales tax will always set them back.

"We always honor and match any kind of a price but then they still have to pay the tax here so that's where the disadvantage comes in."

Amazon will print its last Hoosier tax free receipt soon. The company agreed to collect Indiana sales tax January 201.

"If it affects us for the next couple of weeks it just does but we'll gear up for super bowl and march madness," Joe Thompson with Charlie Wilson's Appliance and TV said.

Indiana estimates Amazon makes up $20 million to $25 million in unpaid sales tax. Reuters reported Governor Mitch Daniels thanked Amazon for helping them address the largest single piece of the revenue shortfall. 

It's been a heated debate, with many states, urging the United States Supreme Court to make all online shopping require state sales tax.

The United States Supreme Court said Monday it's not getting involved in the decision.

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