Indiana Advocating For Online Tax With A Lawsuit

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Written by Monika Miles | Posted in State Tax

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 Monika today!

Monika Miles

Monika founded Miles Consulting Group which focuses on multi-state tax consulting, helping clients navigate state tax issues such as sales tax and income tax in interstate commerce, including e-commerce.

Prior to forming the firm, Monika worked for 12 years combined in Big 4 Public Accounting and private industry. Monika has provided such services as federal and state income/franchise tax compliance and consulting, sales/use tax consulting, audit support, and credits and incentives reviews. She has served clients in a variety of industries including manufacturing, technology, telecommunications, construction, utility, retail and financial institutions.

Monika graduated from the University of Texas at El Paso (UTEP) with a BBA in Accounting/Finance and has a Masters in Taxation from San Jose State University.