© 2023 Michigan State University Board of Trustees
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Michigan To Enforce Sales Tax On More Online Retailers

tax.jpg

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."

Donate $5/month or more, support award-winning journalism, AND enjoy digital access to The New York Times Cooking or The Athletic as our gift of thanks, along with WKAR Passport, for streaming your favorite PBS and WKAR TV programs on your own schedule. SIGN UP TODAY!