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Mon July 16, 2012
Michigan losing $242 million on untaxed online sales
(Associated Press)- Michigan's treasury department says the state will lose about $242-million in tax revenue next year from online retailers like Amazon.
States have trouble collecting sales taxes from sellers that lack a physical presence within their borders.
The ‘Detroit Free Press’ reports that job listings suggest Amazon is planning a software development center in Detroit.
That physical presence would give Michigan greater ability to collect sales taxes on Amazon sales to Michigan residents.
Amazon owns grand-haven-based audio book publisher brilliance audio, but treasury spokesman Terry Stanton says Michigan considers it a separate entity.
Amazon collects sales taxes for sales to residents of Kentucky, Nebraska, New York, North Dakota, Texas and Washington.
Laws requiring the collection of online sales taxes will take effect in California, Indiana, Nevada and New Jersey