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Michigan to Tax Internet Sales, October 2015


 Out-of-state online sellers to collect Michigan sales tax, October 2015.

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.”

As of now, the department is keeping information short and sweet. Sellers seeking additional information are directed to read Acts 553 and 554.

Sell online? See how sales tax software (SaaS) facilitates compliance in all states.

photo credit: alles-schlumpf via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.