Michigan’s New Amazon Tax Law Takes Effect October 2015
- Jan 19, 2015 | Gail Cole
Governor Rick Snyder (R) on January 15 signed legislation that he said “levels the playing field for local businesses, helping Michigan job providers better compete with online retailers.” The enactment of Senate Bills 658 and 659 is expected to generate approximately $60 million in Fiscal Year 2016 alone. Details are available here.
Critics have called the laws “a tax increase that will raise prices.” Gov. Snyder disagrees, calling it a “collection issue” rather than a tax increase. Michigan residents who do not pay Michigan sales tax on goods purchased remotely (such as online or by catalog) are supposed to voluntarily remit Michigan use tax on the purchase price. Few do.
While states act on Internet sales tax, federal lawmakers continue to dance around the issue—most recently by introducing a discussion draft for an online sales tax based on origin sourcing.
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