Business
5:19 pm
Wed December 7, 2011

Retailers call for enforcement of Internet sales tax

Michigan store owners say shoppers who don’t pay sales tax on Internet purchases are cheating the state and themselves.                                

There’s already a state law that requires a six percent sales tax on online purchases.

Shoppers are supposed to keep track of what they buy and pay the tax on next year’s tax return.

But there’s no real enforcement.

Jim Hallan is president of the Michigan Retailers Association.

He says the state’s brick-and-mortar stores can’t compete and he says that hurts everybody.

"You have retailers that are investing in the local schools and supporting community activities, and then you've got this other category that gets to skate by. It's a very unsettling, troublesome situation."

Hallan says a study shows Michigan is missing out on at least $150 million a year in uncollected Internet sales tax.

He says four states have online sales tax enforcement laws and he wants Michigan to do the same.