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Michigan To Enforce Sales Tax On More Online Retailers

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The Michigan Department of Treasury says a 6 percent sales tax will soon be applied to all companies with no physical location in the state.

The department announced Monday that sales tax will be collected from online out-of-state retailers that exceed $100,000 in sales or 200 or more transactions in Michigan within the previous calendar year. The agency estimates that the rule change beginning Oct. 1 will bring in an extra $200 million per year in state revenue.

The move follows a recent U.S. Supreme Court ruling that gave states authority to require online retailers without a physical presence in the state to collect sales tax on their behalf.

State Treasurer Nick Khouri says the rule change will "make sure both hometown businesses and out-of-state online retailers are treated equally."

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