House aims to get taxes from out-of-state online retailers

LANSING, Mich. (AP) — Michigan would collect an additional $80 million to $120 million in taxes annually from online sellers that currently are not paying taxes under bills advancing in the Legislature.

The state House unanimously passed the legislation Wednesday, sending it to the Senate for future consideration.

The measures would codify the state’s guidance that out-of-state sellers exceeding $100,000 or in sales or has 200 or more transactions in Michigan must pay sales and use taxes. The bills would generate additional revenue by require marketplace facilitators to pay taxes on the behalf of independent sellers regardless of how many transactions the sellers have made into Michigan.

Supporters say the legislation would bring “tax fairness,” ensuring that out-of-state sellers do not have an unfair advantage.

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