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“Internet sales tax” approved by state Senate

Dec 11, 2014

The state Senate has approved legislation that would require internet retailers such as Amazon.com to collect a six-percent tax on all sales to people in Michigan.

Credit user cedarbenddrive/Flickr / http://j.mp/1SPGCl0

Supporters say it is unfair to businesses that choose to open brick-and-mortar locations in Michigan that people can avoid paying the tax by shopping online.

“The profits on that… sale would go to that small business that keeps it open and provides jobs to the people of the state of Michigan and an ability to be self-sufficient,” said Sen. Roger Kahn, R-Saginaw Twp.

Sen. Patrick Colbeck voted against Senate Bills 658 and 659. He says lawmakers have not had enough time to evaluate them.

“This is not something you want to rush through,” said Colbeck. “There could be unintended consequences on the details of this bill that I want to make sure that we evaluate.”

People are already supposed to pay the tax when they file their income tax returns each year. The legislation would require companies with no brick-and-mortar stores in Michigan to collect the tax at the time of the sale.

The bills now go to the state House.