MI Lawmakers Considering Bill on Uncollected Taxes from Online Purchases
MARQUETTE, MI – (Great Lakes Radio News) – Michigan lawmakers are not waiting for Congress, and plan to consider state legislation this week to collect currently uncollected state and local sales taxes for purchases made online.
Congress is considering a “Marketplace Fairness Act,” requiring online merchants, such as Amazon.com, EBay and Overstock.com, to charge individual state and local sales taxes at the point of sale and send those taxes to the state where the shopper lives. However, the US Senate won’t vote on the bills until May 6.
Michigan Retailers Association president, Jim Hallan, says while Michigan consumers are required to report, and pay, the six-percent state sales tax on their income tax forms, there is very little compliance, and the state is losing $450 million a year because of it.
Opponents of both the state and federal legislation argue it would be a tax increase on consumers, but Hallan rejects that saying it’s a “tax enforcement” matter that needs to be resolved.
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