State Rep. Lynn Afendoulis today led the Michigan House in unanimously approving her bipartisan plan bringing sales tax fairness to Michigan retailers.

The plan puts current Michigan practice started in October 2018 – based on a U.S. Supreme Court decision commonly known as the Wayfair ruling – into state law, leveling the playing field for retailers regardless of whether they have a store or other physical presence in the state.

It also extends the practice to third-party sales facilitators, such as Amazon and eBay, requiring them to collect and remit Michigan’s sales tax for the sellers who sell on their marketplaces.

Afendoulis – chair of the Tax Policy Committee – noted this is not a new tax, but simply a fairness issue related to Michigan’s existing sales tax.

“This legislation allows us to treat Michigan businesses fairly by imposing the same sales tax requirements on out-of-state sellers,” said Afendoulis, of Grand Rapids Township. “It ensures businesses that sell into Michigan from outside the state do not have an unfair advantage. The Main Street of today is traveled by satellite and fiber optic cable, allowing retailers in Brazil, Vietnam, Ireland and elsewhere to compete as if they are two doors down.  This legislation allows us to stand in support of Michigan businesses — to make them and our state even more successful.”

The legislation will erase a built-in competitive disadvantage for Michigan retailers — like the constituent who expressed concerns to Afendoulis, prompting the legislation. Currently, these retailers suffer when shoppers locate an item in their brick-and-mortar stores but then buy online through a third party to avoid paying state sales tax — which also cuts into funding for schools and other essential public services. The legislation approved by the House will increase revenue.

Other bills in the bipartisan package are sponsored by Representatives Tenisha Yancey, Michael Webber and Joe Tate.

House Bills 4540-4543 advance to the Senate for further consideration.

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