Bill To Enforce Internet Sales Tax Gaining Support In Lansing

Aug 21, 2013

Legislation to require online retailers to collect the Michigan sales tax in Michigan is gaining support in Lansing.

As The Michigan Public Radio Network’s Jake Neher reports, lawmakers expect the bill to start moving through the state House in the coming weeks.

House Tax Policy Chair Jeff Farrington says he expects the legislation to clear his committee early next month. It would require businesses without a brick-and-mortar location in the state to collect a six-percent tax on online sales to Michigan customers.

Bill Hallan of the Michigan Retailers Association claims it could generate around 40 (m) million dollars a year for the state.

“73 % of that would be going to the school aid fund,” he says.  “I don’t think many people can argue that that would be a good source of revenue for the schools.”

Hallan says the extra support for schools has helped sell the idea to lawmakers, especially Democrats.

But some legislators say they consider it a tax increase. And some democrats say expanding the sales tax would unfairly burden low- and middle-income residents.