Snyder wants e-retailers to collect Michigan sales tax

May 11, 2012

Michigan Governor Rick Snyder is appealing to lawmakers in Washington to make online retailers collect state sales tax.

Melissa Anders from MLive.com reports that Gov. Snyder sent a letter to U.S. Senate leaders this week expressing his support for the Marketplace Fairness Act. The law would require companies doing business online to calculate sales tax based on customer location and collect the taxes on behalf of states.

Governor Snyder reportedly sees the law as "a way to level the playing field between brick-and-mortar shops and online retailers like Amazon.com and Overstock.com," Anders writes.

In the letter, Snyder also sights fiscal concerns:

"The Michigan Department of Treasury estimates that total revenue lost to e-commerce and mail-order purchases will amount to $872 million during fiscal years 2012 and 2013...it is crucial that the state has the tools to fairly collect the revenue that it is owed. The Marketplace Fairness act would provide states with the authority to do just that."

Michigan residents are already required to pay a "use tax" of 6 percent on their income tax returns for purchases made online. But it's difficult to enforce and few taxpayers heed the rule.

-John Klein Wilson, Michigan Radio Newsroom