Indiana residents could soon see online sales tax

Indiana residents purchasing products online from out-of-state sellers will soon be charged the state's 7 percent sales tax.

Posted: Aug 3, 2018 3:55 PM

INDIANAPOLIS (AP) — Indiana residents purchasing products online from out-of-state sellers will soon be charged the state's 7 percent sales tax.

The (Northwest Indiana) Times reports that the Indiana Department of Revenue plans to begin enforcing the 2017 online sales tax state law on Oct. 1.

The law requires retailers who annually sell at least $100,000 in the state or do business with more than 200 Indiana customers to collect and remit state sales tax.

The law was challenged last year and wasn't immediately enforced. The state revenue agency says the lawsuit will likely be dismissed following the U.S. Supreme Court's June ruling on online sales tax.

The high court's ruling has allowed states to expand sales tax collections to businesses that sell online or through the mail. Previously, only businesses with a physical presence in a state had to collect sales tax.

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