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Michigan State House Passes Internet Tax Bill Directed at Amazon

by BeechHill
4 replies
Just before Christmas, Michigan law makers have passed their version of the Internet Tax Bill directed at major online retailers to enforce the collection of sales taxes for goods they sell to consumers within the state. It now goes before the Governor where it is expected to be signed into law.

From what I understand Amazon, unlike some other states, has not agreed to collect sales tax from Michigan customers and has only a nexus of one operation based in the state along with its many affiliates. It looks like where agreements were made those states had major fulfillment centers.

I haven't been able to find a responce to this legislation by Amazon as to whether or not they will pull a Colorado here and move their small operation out and close the affilliate program for good.

Has anyone else heard about Amazon's intentions in Michigan? Right now it doesn't look good for the associates here.
#amazon #bill #directed #house #internet #michigan #passes #state #tax
  • Profile picture of the author spearce000
    I predict the US will go the same way as the EU and demand everybody collect sales tax from all customers based on the state where they live, regardless of where the seller is based. Sadly it's only a matter of time.

    All it takes is one state (and it looks like that's going to be Michigan) to set a precedent and the rest will follow like sheep.
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  • Profile picture of the author AlwaysAwa
    Let face it e-commerce is become huge by the day. So they decided to have their share.

    just my $0.02
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    • Profile picture of the author OnlineStoreHelp
      Let's be realistic. Amazon doesn't care about this, really they don't. All they are doing is holding out to get tax credits to open a distribution facility in that state. One they get the tax credits (property tax relief, sales tax relief or workers training credits) they will build a small warehouse and gladly pay the tax.

      I know States need to get money to run their services and while not happy, I pay fat excise taxes to my own state. But, with more things going online, they are better off moving to higher property taxes and relying less on sales taxes. It is more realistic, requires less over site and administration by the taxing authorities and is a more consistent income.

      Unfortunately, many of these states have stupidly, cut property taxes and raised sales taxes over the last few years, even as they saw e-commerce eating into sales tax revenues. You will see the definition of Nexus changing over the next few years which they are doing already. I think the next route will be, if you host your website in a Data Center in a state, you will have Nexus which will be a boon for Texas, Utah, Arizona and Virginia.
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      • Profile picture of the author spearce000
        Originally Posted by OnlineStoreHelp View Post

        I think the next route will be, if you host your website in a Data Center in a state, you will have Nexus which will be a boon for Texas, Utah, Arizona and Virginia.
        That would make the most sense - so you can bet it will never happen!
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