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Michigan Internet Shoppers Should Keep Receipts

  • Oct 5, 2015 | Gail Cole

 Who needs shopping carts now that we can shop online?

The Michigan Department of Treasury is reminding residents who shop online, through catalogs, and by phone to keep receipts for purchases made on or after October 1, 2015, when the Michigan’s new tax requirements for out-of-state sellers took effect.

As explained in the press release,

“Under new provisions …, many so-called remote sellers will begin collecting Michigan’s 6-percent sales tax on purchases made by Michigan residents. Residents making ‘remote’ purchases on or after October 1 will owe use tax if the sales tax wasn’t collected by the ‘remote’ seller.”

The department is not able to reveal which retailers are now required to collect Michigan sales tax and which are not. However, on the Amazon.com website, Michigan has been added to the list of states where Amazon collects sales tax.

The press release reminds that this is not a new tax:

“Michigan’s tax on these types of sales has been on the books for more than 80 years. The new provisions simply mean that various on-line and remote sellers, that will now be deemed to have some presence in the state, will begin collecting tax on the sales they make into Michigan.”

Consumers must pay Michigan use tax on all untaxed sales transaction, which is why retaining receipts is recommended. Read the press release in full.

Automated sales tax software as a service (SaaS) facilitates compliance with state and local sales taxes. See how it works.

Confused by consumer use tax? Watch this Whiteboard.

photo credit: Shopping Cart via photopin (license)

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.