Post by Michigan Swamp Buck on Sept 29, 2015 22:07:10 GMT -6
According to the following definition, the Commerce Clause allows the U.S. Congress to create laws concerning commerce between the states and allows the states to create laws for commerce only within their own state. Therefore, Michigan is not supposed to create a law that effects interstate sales, only intrastate sales.
Commerce Clause
So, if there were to be an online sales tax on purchases from one state to another, it would be the federal government to make it, not Michigan. I haven't read the law that the governor passed, but it seems to me it would just be repeating existing laws that make purchases within the state subject to the 6% sales tax. Maybe it's just an attempt by the governor to make it seem like he is doing something good for brick & mortar businesses, when he all he has done is passed a repeat law that adds nothing new.
After some more thought I must believe that this law relates specifically to online businesses that have offices in Michigan, but it won't effect any online business not in our state that sells to customers here. This, of course, adds nothing new but more paper work and expense for the government as well as doing nothing to "level the playing field" or enforce any existing laws.
Article 1, Section 8, Clause 3, of the Constitution empowers Congress "to regulate Commerce with foreign Nations, and among several States, and with the Indian Tribes." The term commerce as used in the Constitution means business or commercial exchanges in any and all of its forms between citizens of different states, including purely social communications between citizens of different states by telegraph, telephone, or radio, and the mere passage of persons from one state to another for either business or pleasure.
Intrastate, or domestic, commerce is trade that occurs solely within the geographic borders of one state. As it does not move across state lines, intrastate commerce is subject to the exclusive control of the state.
Intrastate, or domestic, commerce is trade that occurs solely within the geographic borders of one state. As it does not move across state lines, intrastate commerce is subject to the exclusive control of the state.
So, if there were to be an online sales tax on purchases from one state to another, it would be the federal government to make it, not Michigan. I haven't read the law that the governor passed, but it seems to me it would just be repeating existing laws that make purchases within the state subject to the 6% sales tax. Maybe it's just an attempt by the governor to make it seem like he is doing something good for brick & mortar businesses, when he all he has done is passed a repeat law that adds nothing new.
After some more thought I must believe that this law relates specifically to online businesses that have offices in Michigan, but it won't effect any online business not in our state that sells to customers here. This, of course, adds nothing new but more paper work and expense for the government as well as doing nothing to "level the playing field" or enforce any existing laws.