Michigan Treasury to enforce sales tax for online retailers

Aug 17, 2018

Michigan is implementing changes this fall to ensure sales tax is collected from online retailers. Beginning October first, out of state sellers will have to charge sales tax

Before the change, if you purchased products online from out-of-state retailers you were responsible for paying the sales tax in your tax return.

The change shifts the responsibility from the individual to the retailer.

Ron Leix is the spokesperson for the Michigan Department of Treasury. He said online retailers located in-state have paid this tax since 2015.

“We have been collecting sales tax from different online retailers that do business within the state, but it’s not an all encompassing piece because there was that out of state presence, in-state presence. So it’s just a change in how we’re collecting that tax.”

Leix said the new tax affects retailers that either: have Michigan sales of 100-thousand dollars or more or conduct 200 or more transactions in the state annually.

If you make an online purchase from an out of state seller who is not covered by the new law, you are still required to pay the sales tax with your tax return.