Amazon, other stores to collect sales tax starting Thursday - WNEM TV 5

Amazon, other stores to collect sales tax starting Thursday

Posted: Updated:
File photo File photo
LANSING, MI (AP) -

Time is running out to buy items from certain online stories without having to pay Michigan's 6 percent sales tax.

A law that takes effect Thursday requires Amazon and some other Internet retailers to pay sales and use taxes.

The "Main Street fairness" law applies to stores with a business "nexus" to the state like Amazon.com. Online retailers without such a presence in the state will still be able to sell goods to Michigan residents without collecting and paying the sales tax.

Michigan estimates $445 million in sales and use tax revenue from remote purchase went uncollected this fiscal year. The law could ensure Michigan receives $60 million more.

Shoppers are supposed to voluntarily pay sales taxes on remote purchases when filing their Michigan tax returns, but very few comply.

Copyright 2015 Associated Press. All rights reserved.

Powered by Frankly
WNEM
Powered by WorldNow CNN
All content © 2017, WNEM; Saginaw, MI. (A Meredith Corporation Station) . All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.