Online retailers now required to collect Michigan sales tax during transactions

Published: Dec. 17, 2019 at 12:26 PM EST
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Michigan sales tax that you see in brick and mortar stores will soon be found online as well.

Governor Gretchen Whitmer recently signed legislation that ensures Michigan's 6 percent sales tax will be collected by online retailers.

According to the governor, the bill, which garnered bipartisan support will help to level the playing field between online retails and local shops.

"It means probably $90 million to $100 million in additional tax revenue to the state of Michigan, three quarters of which will go to our school aid funds, so our local school aren't disadvantaged by online sales," said Mike Prusi, director of Governor Gretchen Whitmer's Northern Michigan office.

This comes after the U.S. Supreme Court's decision back in 2018 that states can require internet retailers to collect sales taxes, even if the merchant does not have a physical presence there.

The new bill will go into effect January 1, 2020.