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Indiana Legislature Aims To Close Online Sales And Hotel Tax Loopholes

INDIANAPOLIS (AP) — Indiana lawmakers are aiming to close what they call a loophole in the state's online sales and hotel tax collection.

The House Ways and Means Committee approved legislation Wednesday requiring so-called "marketplace facilitators" that sell goods or services online on behalf of other entities to collect and remit sales tax to the state.

The Indianapolis Business Journal reports the legislation is in response to a recent U.S. Supreme Court ruling.

The measure has divided hospitality industry officials, with hoteliers arguing that online travel websites should have to collect and remit the taxes when they sell rooms. The travel sites disagree.

The bill now heads to the full House. If it passes, it will return to the Senate, which unanimously passed it in February, because it has been amended.