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Internet Retailers To Charge Taxes Thursday

Even with the new law, the state will still be missing out on hundreds of millions of dollars in uncollected sales tax dollars, unless Michigan taxpayers voluntarily self-report as they’re required to do on their state income tax form.

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Gov. Rick Snyder in January signed a bill requiring out-of-state companies with a few sort of a “nexus” in the state, such as a warehouse or distribution center, to collect and remit those taxes starting October 1.

This has been backed by traditional brick and mortar stores. On Thursday, the state’s “Main Street Fairness” law takes effect, meaning Amazon.com and other retailers will start to charge you the 6% Michigan sales tax when you make your purchase.

Tom Scott is Senior Vice President of Communications and Marketing for the Michigan Retailers Association, which has long advocated for this change.

Shopping online is as easy as clicking your mouse, but for years the sales tax online has been nonexistent.

Online stores without a presence in the state – with no employees, office or fix services, for instance – will still be able to sell goods to Michigan residents without collecting and paying the sales tax. But the Department of Treasury found only 1.5 percent of people actually followed through with the payment, costing more than $500 million in uncollected tax revenue in Fiscal Year 2015.

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Experts say the sales tax isn’t anything new, but the means of collecting it is.

Sales tax for online purchases launches this week in Michigan story image