INDIANAPOLIS (AP) -
Indiana residents purchasing products online from out-of-state sellers will
soon be charged the state's 7 percent sales tax.
Department of Revenue plans to begin enforcing the 2017 online sales tax
state law on Oct. 1, The (Northwest Indiana) Times reported.
The law requires
retailers who annually sell at least $100,000 in the state or do business
with more than 200 Indiana customers to collect and remit state sales tax.
Previously, only businesses with a physical presence in a state had to
collect sales tax.
Services Agency has declined to estimate how much money the state's general
fund could gain once the tax collection begins.
The law was
challenged last year and wasn't immediately enforced. The state revenue
agency said the lawsuit will likely be dismissed following the U.S. Supreme
Court's June 21 ruling on online sales tax.
South Dakota passed
a similar sales tax law in 2016. Online companies Wayfair Inc.,
Overstock.com Inc. and Newegg Inc. sued the state. The high court's ruling
in the case has allowed states to expand sales tax collections to businesses
that sell online or through the mail.
Retailers can join
the Streamlined Sales Tax Registration System to learn how to comply with
multiple state sales tax laws, the Indiana Department of Revenue said.