Ind. reaches online sales tax deal with Amazon.com

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INDIANAPOLIS (AP) — Amazon.com will begin collecting Indiana’s 7 percent sales tax from customers in 2014.

Gov. Mitch Daniels and an Amazon executive announced an agreement Monday that could lead to Indiana collecting at least $20 million more in annual sales tax revenues. The agreement follows a lawsuit by Indianapolis-based shopping mall owner Simon Property Group against the online retail giant and a lobbying push by traditional retailers to end what they call an unfair price advantage for all online retailers. Daniels says Simon will drop its lawsuit.

The deal with Seattle-based Amazon doesn’t include any other companies, but Daniels says the state is asking Congress to require all online businesses to collect state sales taxes.

Estimates on Indiana’s uncollected online sales taxes range from $75 million to $250 million per year.