State Rep. Wayne Schmidt today announced his support for the Main Street Fairness package, which requires out-of-state online retailers to collect Michigan’s 6 percent sales tax and direct it to the state, just as Michigan companies with brick-and-mortar establishments are required to do.
“The Main Street Fairness bills will help level the playing field for Michigan businesses competing with out-of-state online retailers,” said Schmidt, R-Traverse City, who is a co-sponsor of the package. “As a former general manager of two brick-and-mortar companies in downtown Traverse City, I understand the struggles Michigan businesses are facing. House Bills 4202 and 4203 are common sense solutions to fixing the loophole in Michigan tax law benefitting out-of-state companies and making Michigan businesses more competitive.”
Michigan law currently forces shoppers to pay the 6 percent sales tax on all purchases, but online retailers are not required to report it. Instead, Michigan taxpayers must self-report taxes on Internet purchases when filing their tax returns. However, many do not know about this requirement and skip the step altogether.
The bills have garnered bipartisan support and have been referred to the Tax Policy Committee.