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“Internet sales tax” approved by state Senate

Dec 11, 2014
Looking up into the rotunda of the Michigan Capitol.
user cedarbenddrive/Flickr / http://j.mp/1SPGCl0

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.

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.

Steve Carmody / Michigan Radio

The state of Michigan wants online shoppers to save their sales receipts.  

They may need them at tax time.

The growth of online sales has meant a bigger loss of sales tax revenue in Michigan.  

The state expects to lose $440 million in unpaid sales tax on remote sales, mainly online.

“Oftentimes people think that this is a new tax.  It certainly isn’t,” says Treasury Department spokesman Terry Stanton. “It’s been on the state’s books since 1930s.”