Internet sales tax in Michigan
Sept 29, 2015 6:20:55 GMT -6
727sky, dirkgently, and 5 more like this
Post by Michigan Swamp Buck on Sept 29, 2015 6:20:55 GMT -6
For some reason I hadn't heard a thing about this new Michigan law until just recently, right before it was to go into effect. Good thing I made all my Amazon purchases I wanted to make over the last month, the last one was over the weekend.
Snyder signs bill to collect Internet sales tax in Mich.
So, apparently, if while I'm in Michigan and I purchase something from an online company that has a physical presence in Michigan, then they must pay the 6% sales tax, that is how I thought a state sales tax worked - if you are in Michigan and buy something sold in Michigan, then you pay the sales tax. However, is this really about where I make the order rather than where the product is actually purchased from?
If I'm buying something from my computer that is in Michigan, does this "sales tax" apply no matter where the purchase was actually processed? If someone outside of Michigan buys a Michigan product, will they have to pay our sales taxes as well, or one in their state, or perhaps both? What if I buy something online while I'm visiting another state and have the order shipped to Michigan?
I understand the idea behind this, the mail orders outside our state are taking away from our own retailers and avoiding our sales tax here, but isn't that part of freedom of interstate trade? Isn't that just a fact of life when it comes to retail competition? Maybe the person making the sale should take responsibility for this "sales tax" rather than making the buyer pay for it.
It seems to me that they are getting close to calling a sales tax what it really is, it is a buyer's tax. I always felt that when a retailer adds the sales tax after a sale is made, over the price for the products, that is was really just a buyer's tax, they pass that cost on to the buyer at any rate.
When I did internet sales to people in Michigan, I included the sales tax in the price with the claim "we pay the sales tax". Of course I just figured it into the price and passed that cost on to the customer, but it seemed right (to me at least) for the person making the sale to actually pay the taxes rather than tacking it on to the price at the time of purchase. The great thing about figuring the sales tax into the price was that it basically had everyone pay the sales tax regardless of where the order came from or was shipped to. That actually improved my profit margin from out of state sales a little bit.
So I'm assuming now with this new law, that when you buy anything from anywhere on the planet, and you do it from Michigan, be it on the internet or on a printed order from sent by snail mail, you will pay this "sales tax" as the sale was made in Michigan, not the place of the retailer's origin.
I don't know about this one, I wish they would have let us know they were working on this law before they went and passed it. They will often sneak this crap past the people as they know we would probably have a problem with it. Personally, I hope it gets challenged in court and shot down, otherwise they should rename for what it really is, the state buyer's tax.
LANSING -- Retailers on Thursday praised Gov. Rick Snyder for signing legislation they said would help put them on a level playing field by requiring large online retailers such as Amazon to collect and remit the state's 6% sales tax.
The "Main Street Fairness" legislation is aimed at requiring large Internet retailers with a presence in Michigan, such as Amazon, to collect and remit the state sales tax on Michigan purchases, starting Oct. 1.
The bipartisan legislation was pushed by traditional retailers who say tax-free Internet sales are unfairly undermining their businesses.
"Local brick-and-mortar businesses drive our economy and without implementing this fix, whey will continue to serve as showrooms for online retailers," Snyder said.
The legislation applies to online retailers with a "physical presence" in Michigan. A list of online retailers considered subject to the law wasn't available from the state government Thursday, but officials said it would apply to large online retailers such as Amazon and Overstock.
The "Main Street Fairness" legislation is aimed at requiring large Internet retailers with a presence in Michigan, such as Amazon, to collect and remit the state sales tax on Michigan purchases, starting Oct. 1.
The bipartisan legislation was pushed by traditional retailers who say tax-free Internet sales are unfairly undermining their businesses.
"Local brick-and-mortar businesses drive our economy and without implementing this fix, whey will continue to serve as showrooms for online retailers," Snyder said.
The legislation applies to online retailers with a "physical presence" in Michigan. A list of online retailers considered subject to the law wasn't available from the state government Thursday, but officials said it would apply to large online retailers such as Amazon and Overstock.
Snyder signs bill to collect Internet sales tax in Mich.
So, apparently, if while I'm in Michigan and I purchase something from an online company that has a physical presence in Michigan, then they must pay the 6% sales tax, that is how I thought a state sales tax worked - if you are in Michigan and buy something sold in Michigan, then you pay the sales tax. However, is this really about where I make the order rather than where the product is actually purchased from?
If I'm buying something from my computer that is in Michigan, does this "sales tax" apply no matter where the purchase was actually processed? If someone outside of Michigan buys a Michigan product, will they have to pay our sales taxes as well, or one in their state, or perhaps both? What if I buy something online while I'm visiting another state and have the order shipped to Michigan?
I understand the idea behind this, the mail orders outside our state are taking away from our own retailers and avoiding our sales tax here, but isn't that part of freedom of interstate trade? Isn't that just a fact of life when it comes to retail competition? Maybe the person making the sale should take responsibility for this "sales tax" rather than making the buyer pay for it.
It seems to me that they are getting close to calling a sales tax what it really is, it is a buyer's tax. I always felt that when a retailer adds the sales tax after a sale is made, over the price for the products, that is was really just a buyer's tax, they pass that cost on to the buyer at any rate.
When I did internet sales to people in Michigan, I included the sales tax in the price with the claim "we pay the sales tax". Of course I just figured it into the price and passed that cost on to the customer, but it seemed right (to me at least) for the person making the sale to actually pay the taxes rather than tacking it on to the price at the time of purchase. The great thing about figuring the sales tax into the price was that it basically had everyone pay the sales tax regardless of where the order came from or was shipped to. That actually improved my profit margin from out of state sales a little bit.
So I'm assuming now with this new law, that when you buy anything from anywhere on the planet, and you do it from Michigan, be it on the internet or on a printed order from sent by snail mail, you will pay this "sales tax" as the sale was made in Michigan, not the place of the retailer's origin.
I don't know about this one, I wish they would have let us know they were working on this law before they went and passed it. They will often sneak this crap past the people as they know we would probably have a problem with it. Personally, I hope it gets challenged in court and shot down, otherwise they should rename for what it really is, the state buyer's tax.
