Mich. to begin Internet sales taxes

LANSING, Mich. (Feb. 25, 2015) — Michigan retailers, including tire dealerships and automotive service centers, are pleased with the state's new Main Street Fairness Act.

Signed by Michigan Gov. Rick Snyder Jan. 15, the bill is designed to level the playing field for the state's brick-and-mortal retail stores by charging Michigan's 6-percent sales tax on purchases from out-of-state online retailers.

The Main Street Fairness Act goes into effect Oct. 1, according to the Michigan Retailers Association (MRA), which supported passage of the bill. The Michigan Tire Dealers & Vehicle Service Association is a division of the MRA.

“It's not just retail businesses that will benefit from this legislation,” said MRA Board Member Barb Stein at the signing ceremony for the bill. “We are part of the fabric of our local communities, and our communities and our residents are hurt when we are hurt by unfair competition.”

While all Michigan retailers benefit from the Main Street Fairness Act, tire dealers and auto service establishments benefit more strongly than many others in the sense that tires and auto parts are usually big-ticket items, according to Tom Scott, MRA senior vice president of communications and marketing.

“Before, there was an incentive for consumers to go online and save the 6-percent tax,” Mr. Scott said. “The new law should turn that incentive around, so buyers find their local stores the more attractive alternative.”

To date more than 20 U.S. states have Internet sales tax laws either in effect or pending. The Marketplace Fairness Act, which would have mandated Internet sales taxes nationwide, passed the U.S. Senate in April 2013 but failed to pass the U.S. House.

In five states — Alaska, Delaware, Montana, New Hampshire and Oregon — such laws would be moot because they have no sales taxes.