Posted on Proposal 1: The right kind of fix for Michigan roads?, from Mlive; modified.
Another cacoon of uncertainty shrouds this proposal; there is a bill nearing approval in US Congress that will attempt to force the sales tax to be collected on internet sales. (Reason Mag, this month) It will apparently be collected by the seller applying the sales tax in the state in which he is based. (I’m not clear about some sort of minimum rate that these vendors will have to apply.)
A consortium of states is proposed that will pass the collected tax on to the customers’ state (I don’t know how or if that will work.)
States having a high sales taxes will impose higher costs on their internet businesses forcing them to go elsewhere. There are at least 4 states without a sales tax, Or., De, NH, and Mt. These will host all of the Amazons, Ebays…..of the future. None will locate in Michigan, another blow to our economy.
And Michigan won’t see a penny of their hoped for 65 million taxes on the books, records, clothes and whatnot that we buy on line.