Governor Rick Snyder is asking Congress to adopt a federal plan to help states collect sales taxes on Internet purchases.The governor has endorsed a U.S. Senate bill that would allow Michigan to collect the six percent sales tax from online retailers located in other states.
It’s estimated Michigan loses about $900 million a year in revenue that it should be getting from Internet sales to consumers in the state. Brick-and-mortar retailers say it’s hard to compete when they have to collect the six percent sales tax and dot-com-only retailers don’t.
Sara Wurfel is Governor Snyder’s press secretary. She says the federal government should step in rather than forcing each state to craft its own solution.
“It would affect everyone evenly and fairly and help address this issue in the best way possible,” she says.
State law says people are supposed to keep track of their online purchases and remit the tax directly to the state. But few people do, and the requirement is almost impossible to enforce.