Podcasts & RSS Feeds
Most Active Stories
- Former Detroit broadcaster was inspiration for 'Ron Burgundy'
- Pressure builds on Michigan Football as Athletic Department's budget grows
- Muskegon is home to America's tallest, singing Christmas tree
- Tribal sovereignty at issue in US Supreme Court case out of Michigan
- Do you live in a 'Super ZIP?' Here are Michigan's top 5 wealthiest ZIP codes
Tue March 22, 2011
Michigan loses $300 million in sales tax annually to online shopping
Michigan’s budget problems could be helped if the state were able to collect taxes on things people buy online. But federal rules limit the state’s powers.
The U.S. Supreme Court says states can’t force a business to collect sales taxes unless it has a physical store in the state.
Terry Stanton is with the Michigan Department of Treasury.
He says that’s costing Michigan big money.
"We estimate that's more than $300 million a year that the state will miss out on because there's no requirement for sellers to collect the sales taxes," Stanton says.
Stanton says Michigan residents who shop online are expected to report their taxable purchases on their tax form.
But he admits enforcing the law is very difficult.