Michigan Residents To Pay Taxes On Online Purchases
On Thursday, Gov. Rick Snyder signed into legislation bills that mean Michigan residents will soon have to pay a sales tax for online purchases.
Michigan shoppers will now be charged a 6 percent sales tax on anything they buy online within the state and must report any online or out-of-state purchases and pay it on their annual state taxes, according to MLive. (Hmm, I wonder how many of us will actually report and pay those taxes?)
This new legislation goes into effect with the start of the new fiscal year on Oct. 1, 2015.
"We want a fair, level playing environment for people to be successful. That's the way it should be," Snyder explained to MLive.
The bills Snyder signed today, SB 658 and SB 659, now Public Acts 553 and 554 of 2014, actually allow the state of Michigan to collect sales tax for purchases made through online retailers with a "physical presence" in Michigan.
Why a physical presence? Because this is what the state can control.
"We still need federal action to really get to where we should be on this topic," Snyder told MLive.
Thanks to the new legislation, the state believes it will see about $60 million more annually, but Snyder believes Michigan could collect more than $100 million annually, if the federal government acted, according to MLive.
Snyder stated, "Some people like to talk about are you increasing taxes? We are not at all," MLive reported.
Some people are saying this is a tax increase. In reality, it is not.
Will this help local businesses, as some are stating?
Do you believe this is a tax increase?
Is it just a way of leveling the playing field?
What are your thoughts?
Call me tomorrow (Friday) on the Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.