Mitch Daniels

Amazon.com announced plans today to locate a new fulfillment center in Jeffersonville, Ind., creating up to 1,050 new jobs by 2015 and approximately $150 million in investment in the state. “This is Amazon’s fifth Indiana facility, and the company is employing thousands of Hoosiers. We’re grateful for every one of those jobs,” said Governor Mitch Daniels. “These facilities will serve customers across the country, further cementing Indiana’s position as the country’s logistics capital.”

The gig is up for Indiana fans of tax-free, online shopping at Amazon. In two years, the state will begin to collect sales tax for Amazon.com purchases made within the state. Until now and like many web sites, customers have been skipping out on paying sales tax one benefit of online shopping. They agree with us that all of those who sell remotely Internet catalog or otherwiseought to soon as possible start collecting what is duly owed the taxes owed Indiana or most other states, Paul Misener, vice president of Global Public Policy for Amazon.com, said. Governor Mitch Daniels

Amazon has reached an agreement with the Indiana government to begin collecting sales taxes on purchases shipped to that state, marking the latest twist in the retail giant's often contentious relations with state governments over tax issues. Under the agreement, Amazon committed to begin collecting Indiana sales taxes in 2014, a move that the state's Department of Revenue estimates would generate $20 million to $25 million in annual revenue that currently goes uncollected. The deal does not involve any other companies. Indiana estimates the total volume of uncollected revenue from online sales taxes at about $75 million each year.

Amazon.com soon will no longer be able to avoid collecting sales tax in Indiana, which means you also won't be able to bypass paying the tax on your online purchases. Gov. Mitch Daniels said that the Seattle-based retailer has agreed to begin collecting tax in 2014, adding an estimated $20.million to $25.million to the state's coffers each year. Indiana sales tax is 7 percent.

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