Do you favor a new tax on internet sales?
Wed, 11 Sep 2013 15:46:58 GMT —
Get ready to pay tax on the I-tunes song you download. Or the book you buy from Amazon.
A Michigan legislative committee has passed bills designed to ensure the state sales tax is collected during more Internet purchases.
Supporters of legislation approved Wednesday by the House Tax Policy Committee say they're about treating traditional businesses fairly. Critics say the "Amazon tax" is a tax hike.
Retailers like Wal-Mart must collect sales taxes when selling goods over the Internet. But online retailers like Amazon don't have to collect taxes unless they have a physical presence in Michigan.
Amazon is located in Michigan, but critics say the law must be changed to ensure Amazon can't avoid collecting the 6 percent sales tax.
Retailers are particularly interested in the bill because many complain of customers coming into their stores in Michigan, only to check out the merchandise and then go order the product online. They call the practice showrooming.