INDIANAPOLIS | The Indiana Department of Revenue is reminding Hoosiers this holiday shopping season they must pay 7 percent state tax for online and catalog purchases, even if the merchant doesn't collect it.
Some online retailers add Indiana's 7 percent sales tax to an item's price. For those that don't, the purchaser is required to pay 7 percent use tax.
Owed use tax is calculated on the annual income tax return. A line on the tax form instructs filers to add up their online purchases where no sales tax was collected and figure the required use tax.
Last year 28,000 of Indiana's 3.1 million income tax filers paid use tax totaling $1.8 million.