Amazon, others to collect sales tax starting Thursday
Lansing — Time is running out to buy items from certain online stories without having to pay Michigan’s 6 percent sales tax.
A law that takes effect Thursday requires Amazon and some other Internet retailers to pay sales and use taxes.
The “Main Street fairness” law applies to stores with a business “nexus” to the state like Amazon.com. Online retailers without such a presence in the state will still be able to sell goods to Michigan residents without collecting and paying the sales tax.
Michigan estimates $445 million in sales and use tax revenue from remote purchase went uncollected this fiscal year. The law could ensure Michigan receives $60 million more.
Shoppers are supposed to voluntarily pay sales taxes on remote purchases when filing their Michigan tax returns, but very few comply.