Michigan to Tax Internet Sales, October 2015
- Sep 25, 2015 | Gail Cole
Michigan residents have a few more days to shop online without paying sales tax. Beginning October 1, 2015, sales made by many Internet sellers will be subject to tax. Amazon, this means you.
The change is the result of Michigan’s new tax requirements for out-of-state sellers. According to the Michigan Department of Revenue notice of new sales and use tax requirements for out-of-state sellers:
“The new law creates a presumption that a seller is engaged in the business of making sales at retail in Michigan if the seller, or another person on the seller’s behalf, engages in or performs certain activities set forth in the new statutory sections in Michigan. In addition, a seller will be presumed to be making sales in Michigan if the seller enters into an agreement with one or more Michigan residents under which the resident, for a commission or other consideration, refers potential purchases (e.g., by a link on an internet website or an in-person oral presentation), to the seller. This is sometimes referred to as ‘click-through’ nexus.”