How is Indiana Advocating for Online Sales Tax? With a Lawsuit

Indiana us state law, code, legal system and justice concept with a 3d rendering of a gavel on the Indiana state flag on background.

Have you heard the latest online sales tax news coming out of Indiana?

Every time we turn around, it seems there’s a new development in the online sales tax debate. As states continue to get involved and look for new ways to bolster their revenue, the issue continues to grow larger and more complex. Now Indiana is looking to the courts to settle the matter.

Indiana’s Online Sales Tax Lawsuit

On August 29, IndyStar reported that Indiana’s Attorney General filed a lawsuit asking Marion Superior Court (in Indianapolis) to find the state’s online sales tax law constitutional. ” The law, which went into effect July 1, requires out-of-state businesses to collect and remit the same sales taxes as Indiana-based businesses.”

This isn’t the first lawsuit Indiana’s online sales tax law, House Enrolled Act 1129, has been involved in. American Catalog Mailers Association and NetChoice argued the legislation was unconstitutional back in June.

What Do We Think?

It will be interesting to see how the courts resolve these lawsuits. Many states, including Indiana, want to see the 1992 Quill Corp v. North Dakota ruling overturned given that the precedent was set prior to online retailers even being in existence.

As always, stay tuned for more updates regarding the online sales tax debate! It’s clear the debate is far from over as more states are attempting to take matters into their own hands.

Do you want to know more about how online sales tax or other multi-state tax issues may affect your business? Contact us today!

Miles Consulting Group, Inc. is a professional service firm in San Jose, California specializing in multi-state tax solutions. Our firm addresses state and local tax issues for our clients, including general state tax consulting, nexus reviews, tax credit and tax incentive maximization, income tax and sales/use tax planning and other special projects. To learn more, contact us today at www.MilesConsultingGroup.com.

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