6% sales tax to hit more online purchases starting Oct. 1

LANSING – Michigan residents can soon expect 6 percent sales tax to be charged on more of their online purchases, and the administration of Gov. Rick Snyder is recommending the more than $200 million in extra revenue be spent on fixing roads.

Michigan Treasurer Nick Khouri announced Monday that starting Oct. 1, the state will require many mail order and online retailers located outside of Michigan to pay the 6 percent tax on their sales to Michigan customers.

The state expects the change will boost state revenues by $203 million in the 2019 fiscal year, with that amount increasing to $248 million by 2021.

The move follows a June decision by the U.S. Supreme Court allowing the Michigan Department of Treasury to collect sales tax from retailers located outside the state if the retailer exceeds $100,000 in sales or 200 or more transactions in Michigan within the previous calendar year.

www.freep.com/story/news/local/michigan/2018/08/13/michigan-sales-tax-online-purchases-october/977684002/