Senate OKs tighter Internet sales tax collection | Crain's Detroit Business
LANSING — Amazon and other online retailers with ties to Michigan would have to collect its 6 percent sales tax on purchases under legislation approved Thursday by a divided Senate.
Backers say the bills would level the playing field because brick-and-mortar businesses must assess the tax on customers.
The legislation was sent 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 Senate, picking up support from 11 Democrats and 10 Republicans.
Wal-Mart and other stores in Michigan must collect the sales tax when selling goods over the Internet.
Shoppers currently are required to pay unpaid "use" taxes on online, catalog, mail- and telephone-order purchases when they file their state tax returns.
But few taxpayers comply, paying less than $6 million this year.
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 from Amazon, Overstock, eBay and other Internet retailers with a "nexus" to the state.
No comments:
Post a Comment