UNDATED (WTVB) - The Michigan Alliance for Main Street Fairness renewed its call Monday for Michigan to close what they call an "online sales tax loophole" after yet another state took similar steps. Nine states have now moved to collect sales tax from online retailers, whether through administrative rule changes or legislative action, and the Alliance is calling on Michigan to follow suit.
Online retailers can currently avoid collecting and remitting sales tax to the state, which brick-and-mortar retailers say hurts their business. Jim Hallan, president and CEO of the Michigan Retailers Association says, "It's just not right, and it's also destructive to our economy".
A bipartisan package of bills would allow for the collection of sales tax on Internet sales. Action is needed at the state level because, according to Hallan, "things don't really move very quickly" in Congress.