LANSING — State Treasurer Nick Khouri said the state’s sales tax administration will now require many mail order and online retailers located outside of Michigan to pay the 6 percent sales tax on taxable sales into the state. This change comes on the heels of a recent U.S. Supreme Court decision.
“This is an important step forward in the fair administration of our tax system” Khouri said. “With more and more shopping being done online, this change will make sure both hometown businesses and out-of-state online retailers are treated equally.”
Previously, shoppers were supposed to track and self-report the sales tax; the new method will now collect from the business.
In June, the U.S. Supreme Court overturned a more than 30-year precedent in South Dakota v. Wayfair, allowing the Michigan Department of Treasury to collect sales tax from retailers physically located outside the state if the retailer exceeds $100,000 in sales or 200 or more transactions in Michigan within the previous calendar year.
The new requirement will apply to all taxable sales made after September 30.
“We will be working closely with our retail and business partners to ensure a smooth transition to the new rule,” Khouri said.
The state Treasury Department estimates more than $200 million in additional state revenues will be collected annually under the new sales tax rule.