Michigan – House OKs taxes on out-of-state online retailers

LANSING (AP) — Many out-of-state websites that facilitate online sales in Michigan would have to collect and remit the 6 percent sales tax under legislation approved unanimously Wednesday by the state House.

The bills, which were referred to the Senate for consideration next, would bring in an additional $80 million to $120 million in sales and use taxes annually, according to the nonpartisan House Fiscal Agency. Much of that revenue would go to public schools.

A portion of the legislation would codify the state Treasury Department’s 2018 guidance that requires out-of-state sellers to pay taxes if they exceed $100,000 in sales or have 200 or more transactions into Michigan — which came after a U.S. Supreme Court decision that enabled states to require online retailers to collect sales taxes on purchases from states where they have no physical presence.

The bills also would require “marketplace facilitators” — the Amazons, eBays and Etsys of the online world — that meet one of the thresholds to pay sales and use taxes on behalf of independent sellers regardless of how many transactions the seller has done in Michigan.

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october 18, 2019