‘Main Street Fairness’ Bills Reviewed In Senate

The Senate Economic Development Committee on Wednesday took up a pair of bills aimed at requiring any business with a nexus in the state, including online stores like Amazon, to collect sales and use tax. The Senate bills, SB 658 and SB 659, are sponsored by Senator Jim Ananich (D-Flint).

James Hallan, President of the Michigan Retailers Association, asserted that the purpose of the bills is to make sure that all employers are treated fairly and the appropriate tax is collected at the point of sale.

Michigan law currently requires businesses to collect the use tax only if they maintain a “physical presence” in the state, but that definition has not been updated since 1992 and therefore predates the rise of e-commerce.

When citizens file their income taxes, they are supposed to report Internet transactions, however, proponents of the legislation claim most do not, either for lack of knowledge or “conveniently forgetting.” The Department of Treasury supported that claim, estimating that just fewer than 5 percent pay the use tax.

Meijer, Amway, Kroger, JCPenney, Home Depot, the Michigan Grocers Association, Target, Walmart, and a handful of small businesses submitted cards in support of the Senate legislation.

Senator Mike Kowall (R-White Lake Township), Chair of the Committee, said he expects to have continued hearings on the legislation.

posted by PAA Online , Friday, January 31, 2014 11:04 AM
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