TaxOps

Shopping Mall Owner Sues Indiana over Amazon Taxes

The largest owner of shopping malls in the U.S., Simon Property Group, is taking on retail giant Amazon in the Indiana courtroom. Simon Property Group has filed suit against the state of Indiana in an effort to force the state to collect sales taxes from online retailers.

Leading up to the lawsuit, Simon Property Group requested that Indiana require sales tax to be collected on Amazon.com purchases within the State. Quill Corporation v. North Dakota, 112 S. Ct. 1904 (1992) established that a company must have physical presence for a sales tax collection obligation. While Amazon has a physical presence with its three distribution centers, Indiana and the Company have an agreement that exempts Amazon from collecting and remitting sales tax.

The courts will have to decide whether Amazon and other online and catalog retailers meet various states' rules for sales and use tax collection and remittance. Meanwhile, Congressional legislators have taken up once again the issue of closing the online sales tax loophole at the federal level. Should the latest bill succeed, states will have the option of requiring online retailers to collect and remit sales tax.

Click on link to read: Federal Bill Would Close Online Sales Tax Loophole

For questions regarding SALT issues, please contact Meredith Theiss at 720-227-0064 or mtheiss@taxops.com.