Hoosiers now pay online sales tax

Indianapolis, In. — Here is the bottom line- If you live in Indiana you now pay 7-percent sales tax on online purchases from out-of-state companies. The law was passed in October of 2017 and the Indiana Supreme Court knocked down a challenge this summer and ordered collection to go forward effective October 1.

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.

Governor Eric Holcomb released the following statement:

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.

South Carolina has enacted is similar law as well.