Internet sales tax bill clears state House Committee

Sep 12, 2013

File photo
Credit The Associated Press

So-called "Main Street Fairness" bills face an uncertain future in the full House. 

The House Tax Policy Committee approved bills on Wednesday that would require some online retailers to collect the state's 6% sales tax on purchases. Gongwer News Service reporter Alethia Kasben told WMUK's Gordon Evans that five members of the committee abstained because they question whether the state should be weighing in on this issue. They believe it should be the federal government's responsiblity. 

The state Treasury Department says Michigan is leaving about $290-million uncollected on purchases over the Internet (Detroit News story). 

The Michigan Retailers Association and other groups say that traditional "brick and mortar" retailers are at a disadvantage competing with companies selling products exclusively online (MLive story).