Indiana online tax deal causes some GOP discontent

INDIANAPOLIS (AP) ? Indiana House leaders headed off a vote on a push for the state to begin collecting sales taxes from online retailers that could have rebuked a deal between Gov. Mitch Daniels and Inc.

Some Republican legislators were ready to break with the GOP governor over the agreement that Amazon not start collecting Indiana sales taxes until 2014. Those lawmakers said online retailers shouldn’t continue to have a competitive advantage over traditional stores.

Republican Rep. Sean Eberhart of Shelbyville says he would have voted this week for a Democratic proposal to start collecting online sales taxes next January in fairness to small businesses.

Daniels says Indiana reached a good agreement with Amazon in January and that Congress must act for states to collect sales taxes from all online retailers.