State says online shoppers need to pay taxes

INDIANAPOLIS — Indiana officials say Hoosiers shopping online this holiday season must pay Indiana's 7 percent sales tax, either at the time of the online sale or later during spring tax season.

A 1969 state law requires residents to pay a use tax on purchases where Indiana's sales tax is not collected. The state Department of Revenue says shoppers should check online receipts to see if Indiana sales tax was collected and — if not — should report the amount owed on their 2010 income taxes this spring.

Just 24,000 people reported such taxes owed last year out of 3.1 million people who filed individual income tax returns. Last year the use tax brought in $1.4 million for the state, and officials say more online shoppers need to know about the law.


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