Indiana, Enjoy Your Final Two Years Of "Tax-Free" Amazon Purchases

Add Indiana to the list of states in which Amazon customers will pay sales tax when they buy something, as state officials have reached a deal that will require the online retailer to start collecting the state’s 7% tax on purchases.

The AP reports the deal doesn’t take effect until 2014. Indiana expects to haul in $20 million in extra annual revenue.

Physical retailers push for arrangements such as this, because they help level the playing field against Amazon’s usually tough-to-undercut prices. You can forgive customers for being less than enthused, being that they’ll be the ones sticking that extra $20 million into the state’s coffers.

If you’re curious about the way your state handles income tax with Amazon, check out this Amazon help page.

Indiana officials reach deal with Amazon.com to start collecting state’s sales tax in 2014 [AP via The Washington Post and Slashdot]

Previously: Amazon Cooperating With State Tax Collecting Bill, Others Not So Happy