Tagged: taxes

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.

Kowall says the current system puts Michigan’s ‘bricks and mortar’ retailers at an unfair disadvantage.

State House Democrats spent “tax day” pushing a plan to repeal several state tax policies.
 

LANSING, Mich. (AP) - Michigan says the new corporate income tax returns it's processing are much shorter in length than other business tax returns.

The state Department of Treasury says the returns submitted to date average 17 pages. That's 41 fewer pages than the average Michigan Business Tax return.

The Corporate Income Tax approved in 2011 took effect for the 2012 tax year. Some businesses still file an MBT return because they qualify for certain tax credits.

The state says some MBT returns are longer than 1,000 pages.

Michigan could loose $140 million if federal budget cuts happen Friday

"The White House says Michigan faces about $140 million in losses if an automatic federal budget cut takes effect Friday, and U.S. Sen. Carl Levin says he's hopeful the deadline pressure will prompt Congress to raise money by closing some tax loopholes. The cuts include $67.7 million in gross pay to 10,000 civilian Defense Department employees in Michigan and $42.2 million to K-12 and disability education programs in the state," the Associated Press reports.

Bankruptcy planning for Detroit

"It appears that officials are laying the groundwork for a so-called 'managed bankruptcy' in Detroit—though they hope that won’t actually happen. A process for going through chapter nine municipal bankruptcy is laid out in the state’s new emergency manager law that kicks in next month. Governor Snyder acknowledges that bankruptcy might be the only way to reduce Detroit’s long-term debt—estimated at more than $14 billion," Sarah Cwiek reports.

Taxes impact low and moderate earners this year

"Changes to Michigan's tax structure are hitting low and moderate earners hard this year. Lawmakers approved changes in 20-11 that cut 1-point-6 billion dollars in business taxes, but raised taxes on individuals. Low-income families could be the hardest hit, with the elimination of the child tax deduction, and a reduction in the Earned Income Tax Credit," Vincent Duffy reports.

Ever wonder where your Michigan tax dollars go?

MLive’s Jonathan Oosting has an article today that breaks it all out.

He notes that:

Michigan is one of eight states that levies a sales tax on fuel purchases, but it does not devote any of that revenue to road maintenance or repairs.

LANSING, Mich. (AP) - In the height of tax season, many Michigan residents owe more money to Lansing.

Some major income tax changes approved 21 months ago by Gov. Rick Snyder and lawmakers are just now starting to hit taxpayers filing their state returns.

Homeowners and renters used to qualify for a credit if their household income was no more than around $83,000 a year. Now they don't get it unless their total household resources are $50,000 or less.

A state tax deduction for children is gone. So is a special exemption for seniors.