Michigan House Panel Votes to Tax Internet Sales

By: Associated Press
By: Associated Press

LANSING, Mich. (AP) -- A Michigan legislative committee has passed bills designed to ensure the state sales tax is collected during more Internet purchases.

Supporters of legislation approved Wednesday by the House Tax Policy Committee say they're about treating traditional businesses fairly. Critics say the "Amazon tax" is a tax hike.

Retailers like Wal-Mart must collect sales taxes when selling goods over the Internet. But online retailers like Amazon don't have to collect taxes unless they have a physical presence in Michigan.

Amazon is located in Michigan, but critics say the law must be changed to ensure Amazon can't avoid collecting the 6 percent sales tax.

Backers of the legislation acknowledge it would ensure just a fraction of the nearly $500 million in taxes from remote sales will be collected unless Congress also acts.


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