Hoosiers to pay online sales tax starting Monday

INDIANAPOLIS (WISH) – Starting Monday, Hoosiers will have to pay more to shop online, in some cases.

The Indiana Department of Revenue is set to start enforcing a law passed in 2017 on Oct. 1.

If you buy products online from out-of-state companies, you’ll be charged the state’s 7 percent sales tax.

The law lets the state collect the sales tax from online retailers even if they don’t have a physical store in Indiana.

The state law passed back in 2017 but was then challenged and put on hold. 

The challenge was dismissed after a Supreme Court ruling this summer.

The new sales tax rule will apply to businesses that make more than $100,000 in sales from Hoosiers, or have more than 200 separate transactions in Indiana.

Gov. Eric Holcomb released this statement in June after the Supreme Court decision:

“A lot about our world and economy has changed in the 26 years since our nation’s highest court last ruled on this issue. With the incredible evolution of technologies and the growth of internet sales, this Supreme Court ruling will help level the playing field between our Hoosier-based companies that operate retail stores and out-of-state companies that sell products and services online in our state. We’re taking a careful look at the ruling to better understand its implications for Indiana.”

Hoosiers aren’t alone. South Carolina is enacting a similar law starting Monday, too.