Internet Sales Tax Clears State House Committee

A plan to enforce a six-percent sales tax on all internet purchases is headed to the full state House.

A legislative panel approved the measure Wednesday.

But as The Michigan Public Radio Network’s Jake Neher reports, some lawmakers say it’s really up to the federal government to address the issue.

Unlike brick-and-mortar stores, large online retailers like Amazon don’t have to collect sales tax from customers in Michigan. The legislation would – at least in theory - force out-of-state companies to collect the sales tax.

Representative Jeff Farrington abstained from voting on the bill. He says it may be a step in the right direction…

“But, to me, I try to look at, what’s the best overall policy?” he asks.  “And that’s the one that’s at the federal level. And I would urge Congress to move on it.”

State House Speaker Jase Bolger has not committed to holding a vote on the measure. He says he’s “frustrated” that Congress has not acted on the issue.