Numerous news outlets reported last week on a deal between the State of Indiana and Internet retailer Amazon.com. Amazon, who has a significant physical presence in the state, will begin collecting Indiana’s 7 percent sales tax from customers in 2014. eBay Inc. released the following statement in response to the news:

“The law related to sales tax collection by retailers is based on the principle that retailers are to collect and remit sales taxes in states where they have operations, such as stores, warehouses and distribution centers. This is based on the Supreme Court’s Quill Decision (1992). Despite the fact that Amazon has significant facilities in the State of Indiana, they do not collect sales taxes in the state. The Quill decision and the obligation of retailers to collect and remit sales taxes in the states where they operate is an important tax policy principle, linking the retailer benefits of physical presence with the tax burdens. The announcement that they will be complying with the physical presence standard and collecting sales taxes in the state beginning in 2014 is a step forward and recognizes the sales tax obligations that a retailer with physical presence in a large number of states carries.”