MI SENATE OKS TIGHTENING OF WEB SALES TAX COLLECTION

Original Story: detroitnews.com

Lansing — Amazon.com and some other online retailers would have to collect Michigan’s 6 percent sales tax on purchases under legislation approved Thursday by the state Senate.

Backers say the bills would level the playing field because brick-and-mortar businesses already must assess the tax on customers.

The legislation approved Thursday heads to the Republican-led House for its consideration in the waning days of the legislative session. It won approval on a 21-16 vote in the GOP-controlled chamber, picking up support from Republicans and Democrats.

Wal-Mart and other stores in Michigan must collect the sales tax when selling goods over the Internet.

The state Treasury Department estimates that $482 million in revenue from remote sales went uncollected in the last fiscal year. The bills could raise in the ballpark of $50 million a year.

It may be no coincidence the bills are advancing now. Lawmakers could throw taxes on Internet sales into the mix during talks over committing at least $1.2 billion a year more to roads and other transportation infrastructure.

Legislation to Tax Internet Purchases?

First appeared in Up North Live

Governor Rick Snyder is set to deliver his state of the state address -- and many retailers hope that this year he takes action on a bill that would close a tax loophole on online sales.

If you shop online, chances are you're probably breaking the law. That's because internet retailers like Amazon.com don't collect Michigan's 6% sales tax. They don't have to, but you are legally obligated to pay it.

The loophole is something many local businesses want changed.

Horizon Book Sales Manager, Amy Reynolds says it puts them at a competitive disadvantage.

By forcing internet retailers to charge the sales tax it could also bring millions of much needed revenue to Michigan.

The legislation would require online businesses to offer a link to another website where the buyer would make purchases and the internet store could then collect the taxes.