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June 21 2018

Sales Tax Changes Coming Your Way - Must Online Businesses Pay Sales Tax?

For those wondering what the Supreme Court of the United States’ decision in South Dakota v Wayfair means (must online businesses pay State sales tax), Andrea Crumback’s initial review of the decision has led her to the following conclusions for Michigan.  However, this is not tax advice, only Andrea Crumback’s input on the decision. The winners are those businesses with a physical presence in Michigan (storefronts and warehouses) who are already paying sales taxes.  The playing field will be leveled somewhat by taxing many online businesses, who have not been required to pay sales taxes in the past.  The “losers” appear to be mid-sized online businesses who do not currently pay sales taxes in Michigan.  However, the real “losers” are ultimately Michigan consumers purchasing items from mid-sized online businesses because the price of online products will increase for them.  The websites of mid-sized online businesses where consumers have always enjoyed not paying sales tax will now, in most instances, begin charging sales tax.   The link to the opinion is: #tax