Indiana files lawsuit to defend out-of-state sales tax law

INDIANAPOLIS (AP) — Indiana has filed a lawsuit in defense of a new law that would allow the state to collect sales tax from out-of-state businesses.

Gov. Eric Holcomb said Monday that he wants the U.S. Supreme Court to overturn its 1992 ruling that said out-of-state retailers don’t have to collect and remit sales tax if they don’t have a physical presence in the state.

Holcomb says the court needs to revisit the ruling because of online sales growth and improvements in software and technology.

The lawsuit has been filed against Boston-based home goods retailer Wayfair Inc. and Utah-based closeout retailer Overstock.com Inc.

An Indiana Fiscal Policy Institute and Ball State University study estimates the state lost around $77 million in 2012 because it couldn’t collect online sales taxes.

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