Sales Tax On Internet Purchases in Michigan

The Republican controlled Senate in Michigan just passed a bill that would require online retailers to charge Michigan residents sales tax on their online purchases, even if they do not have a presence in Michigan.

The bill passed 21-16 with 10 Republicans voting yes with the Democrats in support of the bill.  All 16 no votes were from Republicans.

It is interesting that the party (Democrats) that the media and themselves tells us are for the little person wants to raise taxes on those same little guys.

The law today states that sales tax can only be charged when a business has a physical presence in the state, such as an actual store.  The bill that passed the Senate would redefine what a physical presence means.

That redefinition would include things like warehouse or storage space, or contracting with installers or repair personnel.

The Senate Fiscal Agency believes that the bill if passed by the House and signed by the governor may result in about $50 million more in tax revenues.

The bills now move the House for consideration.

What are your thoughts on this?

It does harm the local store owner who has a physical presence, in the true sense of word, in Michigan.

Although online retailers who do not have a presence are then asked to charge Michigan residents a sales tax yet they do not use any Michigan resources themselves.

Call me today on the Live with Renk show, Monday through Friday 9 a.m. to noon, to let me know your thoughts at 269-441-9595.