Mich. House panel to vote on taxing Internet sales
Updated On: Sep 11 2013 07:41:48 AM EDT
Lawmakers are expected to cast a vote on legislation designed to help Michigan collect sales taxes from Internet purchases.
Supporters of bills before a Republican-led state House committee Wednesday say they're about being fair to brick-and-mortar businesses that must collect sales taxes. Critics say the "Amazon tax" is a tax hike.
Retailers like Wal-Mart must collect sales taxes when they sell goods over the Internet. But online retailers like Amazon don't have to collect sales taxes unless they have distribution centers in Michigan.
Shoppers are required to pay unpaid sales taxes when they file their state tax returns, but few taxpayers comply.
Backers of the legislation acknowledge Congress must act if Michigan is going to ensure taxes are paid on all Internet sales. But the bills are a start.