Hoosiers who took advantage of online deals
on Black Friday, Cyber Monday and throughout 2010 will want to check their
receipts to see if Indiana sales tax was collected as part of those
purchases, the Indiana Department of Revenue said on Tuesday. If not, those
Hoosiers will need to total the amount of those purchases and report the
sales tax due on their 2010 Indiana income taxes in the spring.
Indiana has had a law on the books since 1969 requiring Hoosiers to pay use
tax, which essentially is state tax for any purchases where Indiana sales
tax was not collected.
Last year, more than 24,000 taxpayers in Indiana reported use tax, amounting
to more than $1.4 million. However each year, more than 3.1 million people
file individual income-tax returns in Indiana.
“With so many people shopping online these days, we realize there are far
more who probably owe the use tax from online purchases,” Revenue
Commissioner John Eckart said. “At this point, we’re trying to educate
Hoosiers about the law so they’ll know about it and follow it as the state
To avoid the uncertainty that pending congressional legislation could create
for out-of-state online businesses, more than 1,800 of them have voluntarily
begun collecting sales tax on behalf of states through a program called
Streamlined Sales Tax.
Businesses already having a physical presence in Indiana are required to
collect sales tax from their online sales.