LSAClassOf2000

May 29th, 2015 at 3:55 PM ^

As part of the "Main Street Fairness" legislation, as it was called, online retailers will be required to collect and then remit Michigan's sales tax starting on October 1st. I believe Amazon is included in that as well actually. I know Overstock has a warehouse here in the state, but I didn't know that Amazon did (the only way they would be able to suject Amazon to this, I believe). I couldn't find a comprehensive list of retailers affected though. 

Bryan

May 29th, 2015 at 5:06 PM ^

Int'l Shoe had about a dozen salesmen in Washington when the case was brought, all of whom were residents of the state. 

Not the same for Amazon. 

I don't see why states do not start levying higher sales taxes on internet vendors and reducing the sales tax on physcial stores in a state. It give people inventives, at least on major purchases, to puchase instate, thereby helping the local economy. 

sharks

May 29th, 2015 at 5:50 PM ^

but I think Shoe lead to other holdings that broadened the interstate commerce definition/rules- Burger King, the Japanese component manufacturer, etc.

Good looking on the cite.

Tater

May 29th, 2015 at 9:13 PM ^

This is going to screw the little guy who sells things online and will now have to hire an accountant to file 50 state tax returns.  It would make more sense to just have people be responsible for sales tax in the state they sell their merch.  If they move overseas to avoid taxes, have them pay tax at the US shipping point.

BiSB

May 29th, 2015 at 3:21 PM ^

You're already legally obligated to pay sales taxes on online purchases. I'm not sure we can be upset that retailers have to collect the taxes we're required to pay.

If you're curious, Amazon has to start collecting sales tax in Ohio because they are establishing a physical presence in Ohio. They don't have a presence in Michigan, so they don't have to collect Michigan Sales Tax (it's a Commerce Clause Supreme Court States Rights thing). If you're in Michigan, there is no sales tax when you check out, but you have to pay a use tax on those items when you file your state income tax returns.

JonSnow54

May 29th, 2015 at 3:51 PM ^

So you just admitted to tax fraud in an online public forum?!  (Only kidding of course)

I'm an Illinois resident, and prior to this past year, Amazon didn't collect state tax on my purchases.  But when filling out my taxes via turbo tax, the program specifically asks me if I've made any online purchases in the past year.  I feel too guilty saying no, so I say yes.  Anyway, I had several hundred dollars in Amazon purchases and I tested out the impact on my return by putting in $0 first before the real value, so I could see exactly how much my return would go down; it only went down about $30, so while it may seem like a big deal, it's impact is relatively small.

bluebyyou

May 29th, 2015 at 4:41 PM ^

Your approach won't matter until Michigan, or any other jurisdiction that collects online taxes similarly, decides to audit you.  Then, you might have a problem, particularly where you announce your intentions of intentionally not paying the tax. Discretion!!!

This new law sucks, but in all fairness it does provide a significant advantage to on-line retailers.

Steve-O

May 29th, 2015 at 5:22 PM ^

Voluntary in the sense that paying your income taxes is voluntary.  You have a legal obligation to pay it, it's just that enforcement for individuals isn't lucrative and therefore, is lax.

sULLY

May 29th, 2015 at 5:18 PM ^

Spot on.  The Supreme Court case of Quill vs North Dakota a few decades is what established "physical presence" as the bright line test for a state's ability to collect sales tax for out of state purchases.  In addition to warehouses and storefronts, sales people or company owned delivery trucks are typically enough to establish the necessary presence.  I spent four years a sales tax analyst with a large wholesaler/retailer, with some form of presence in every continental state.  These sorts of issues came up regularly in audits.

seabass1974

May 29th, 2015 at 4:39 PM ^

Yeah, and Amazon Prime just rolled out their FREE ONE DAY shipping, where I live. I'm trying it out to see how/if it works. For $99 a year, getting all the free movies, free music, free two/one day shipping among other free stuff that comes with it, it's so worth it.

sj

May 29th, 2015 at 7:04 PM ^

Amazon may still outperform stores, but right now they basically are at an 5-10% discount in most states. It's a shame that policy would have an unequal field like that, especially since brick stores provide jobs for state residents. It's a shame the policy works out that way and Ohio is doing the right thing.

Raise or lower taxes based on other priorities, but they should be fair.

BlueCube

May 29th, 2015 at 3:57 PM ^

to collect the tax. The tax was passed as part of the road funding bill. This part did not have to be voted on by the voters. The sales tax rate increase was voted down and didn't go into effect. I believe the additional tax collected is still supposed to go to road improvement.

bronxblue

May 29th, 2015 at 4:53 PM ^

So I assume you haven't had to deal with a cable company, phone company, car dealership, grocery store, most restaurants, insurance, etc. I'm not a defender of government oversight, but the argument that a private sector entity is well above a public sector one seems incredibly bias. They all kinda suck sometimes.

The Wolf

May 29th, 2015 at 5:00 PM ^

Isn't that kind of the point though? If the private sector offering you've chosen sucks you have the ability to seek out and choose another offering/provider (more than fair caveat about utilities/cable companies/etc.). With the government - typically - you have zero other offerings from which to choose. So, at least in your example, you would seek out an alternate car dealership, grocery store, restaurant or insurance company that was more to your liking.




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wolverine1987

May 29th, 2015 at 5:03 PM ^

I hate Comcast like everyone else, they are awful. and we've all had bad service everywhere. But except for the case of near monoplies like Comcast and utility companies, those that are bad ususally go out of business at some point, or better companies come along. No government department EVER goes out of business. And they all have way more power over us than a private company. 

BornSinner

May 29th, 2015 at 3:54 PM ^

Pretty sure a lot of states are forcing Amazon to start taxing. 

Sigh it's an end of an era.