Retailers: Undo Amazon tax deal

INDIANAPOLIS (WISH) - Indiana retailers are pushing for changes in a deal made between the state and Amazon.com that calls for no sales taxes to be charged on online transactions until January of 2014.

The Indiana Merchants for Tax Fairness are supporting a bill that would impose sales taxes on Amazon and other online merchants starting in July of next year.

"Retailers don't mind competition in the marketplace," says Grant Monahan of the Indiana Retail Council. "In fact, they thrive on it, but they need competition on a level playing field."

The bill has bi-partisan support in the General Assembly. A recent study showed that online merchants avoid at least $75 million a year in Indiana taxes. The Indiana Department of Revenue said last week that about 28,000 Hoosier taxpayers reported use tax on items purchased online last year.

"We, every month, collect and pay our sales taxes," says Jeff Kinney, owner of Kinney Dancewear, "and I believe that every retailer in the state, whether it be on the Internet or brick and mortar stores should do the same."

Amazon has recently made deals with four states that call for sales tax collections prior to 2014.