Online shopping to include sales tax - WNEM TV 5

Online shopping to include sales tax

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BAY CITY, MI (WNEM) -

Many people love to shop online.  And for years they didn't have to pay sales tax on items they bought from retailers like Amazon.com.  But starting Thursday, that changes. 

Laura Horwath owns Ferne Boutique in Bay City. Although she doesn't currently sell online, she may decide to do so in the future.

"Yeah, I am definitely considering online sales in the future, but I'll definitely have to look at all the impact that comes with it," Horwath said.

One local store that does sell online is Herman Hiss and Company in Bay City.

Barb Bosco said the tax levels the playing field for local businesses because now everyone doing business in Michigan has to charge the tax.

"I think no matter where you shop you should pay sales tax, and we all know that our government needs money," Bosco said. "We need local people to shop locally and support your local independent businesses."

Because the law applies to only online retailers with a physical presence in Michigan, many out-of-state stores can still skip the sales tax when ringing up Michigan residents’ virtual shopping carts.

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