online retail sales

Michigan lawmakers look for ways of closing the online sales tax loophole

Steve Carmody — Tue, 30 Apr 2013 21:01:16 +0000

Michigan lawmakers are looking at how to get online retailers to collect state sales taxes.

Currently, shoppers are supposed to report any sales taxes they owe on online purchases, and pay them with their income tax.

But most people don’t.

State Representative Eileen Kowall’s bill would put the responsibility on the online retailer. She’s quick to say this is not a tax increase, just making sure that the taxes that are owed are being paid.

Michigan losing $242M in untaxed online sales

The Associated Press — Sun, 15 Jul 2012 18:38:14 +0000

Michigan's Treasury Department says the state will lose about $242 million in tax revenue from Amazon and other online retailers.

States have trouble collecting sales taxes from sellers that don't have a physical presence within their borders. Amazon owns Grand-Haven-based audio book publisher Brilliance Audio, but Treasury spokesman Terry Stanton says Michigan considers it a separate entity.

Snyder wants e-retailers to collect Michigan sales tax

Michigan Radio Newsroom — Fri, 11 May 2012 20:40:37 +0000

Michigan Governor Rick Snyder is appealing to lawmakers in Washington to make online retailers collect state sales tax.

Melissa Anders from MLive.com reports that Gov. Snyder sent a letter to U.S. Senate leaders this week expressing his support for the Marketplace Fairness Act. The law would require companies doing business online to calculate sales tax based on customer location and collect the taxes on behalf of states.

Governor Snyder reportedly sees the law as "a way to level the playing field between brick-and-mortar shops and online retailers like Amazon.com and Overstock.com," Anders writes.

In the letter, Snyder also sights fiscal concerns:

"The Michigan Department of Treasury estimates that total revenue lost to e-commerce and mail-order purchases will amount to $872 million during fiscal years 2012 and 2013...it is crucial that the state has the tools to fairly collect the revenue that it is owed. The Marketplace Fairness act would provide states with the authority to do just that."

Michigan residents are already required to pay a "use tax" of 6 percent on their income tax returns for purchases made online. But it's difficult to enforce and few taxpayers heed the rule.

-John Klein Wilson, Michigan Radio Newsroom

Online shoppers shifting focus

Steve Carmody — Wed, 28 Dec 2011 14:55:45 +0000

An Ann Arbor-based consumer research firm says there’s been a shift in people’s online shopping habits.

Ann Arbor-based ForeSee asked more than eight thousand online shoppers about their satisfaction levels with 40 of the nation’s top web retailers. ForeSee released its 7^th annual Holiday E-Retail Satisfaction Index today.