Outcry Halts Michigan Attempt at Internet Sales Tax
Despite the ongoing effectiveness of the Quill Decision, some states are still trying to reach across their borders into the pockets of out-of-state businesses. In Michigan, House Bills 5004 and 5005 would do just that. These measures would actually say a business is physically in the state if the business advertises anywhere on a website in Michigan and a customer "clicks through." Together, this legislation would force out-of-state online businesses to collect a six percent state sales tax on goods sold to state residents. Modeled after the flawed New York law, 5004 and 5005 would do great harm to Michigan businesses (advertisers would most certainly pull their advertisements as they have done in other states) and consumers as well as those out-of-state. Americans for Tax Reform sent the letter to the Michigan House Tax Policy Committee strongly opposing the bills.
Read the full letter here