Internet retailers sell products without collecting 6% state tax
TRAVERSE CITY -- Governor Rick Snyder is set to deliver his state of the state address -- and many retailers hope that this year he takes action on a bill that would close a tax loophole on online sales.
If you shop online, chances are you're probably breaking the law. That's because internet retailers like Amazon.com don't collect Michigan's 6% sales tax. They don't have to, but you are legally obligated to pay it.
The loophole is something many local businesses want changed.
Horizon Book Sales Manager, Amy Reynolds says it puts them at a competitive disadvantage.
By forcing internet retailers to charge the sales tax it could also bring millions of much needed revenue to Michigan.
The legislation would require online businesses to offer a link to another website where the buyer would make purchases and the internet store could then collect the taxes.
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