Your Cyber Monday Purchases Will be Taxed

On Tuesday the Michigan House heard legislation that could be up for a vote as early as Wednesday.  The bill would require online retailers to collect Michigan sale's tax on purchases made over the internet.

Currently retailers that have a store in Michigan are already required to collect the 6 percent sales tax when they sell items online.  Stores that are only online retailers do not have to collect the sales tax, it is up to the customer to claim their purchase and pay the tax.

Stores competing with companies like Amazon.com are stating that the online retailer has an unfair advantage. Prices appear to be cheaper to shoppers because Amazon is not required to collect sales tax.

It is estimated, by the Senate Fiscal Agency, that the legislation could bring in $50 millon more per year for local and state governments.  The interest in the bill stems from the discussion to increase gasoline taxes. The legislator's are looking to find another way to direct revenue to improve Michigan roads and transportation infrastructure.

This legislation would not solve the road funding problem entirely.  It is estimated that $1.2 billion would be needed to bring the roads up to par.