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Amazon, other stores to collect sales tax starting Thursday

LANSING, MI (AP)--   Time is running out to buy items from certain online stores without having to pay Michigan's 6 percent sales tax. 

A law that takes effect Thursday requires Amazon and some other Internet retailers to pay sales and use taxes.

The "Main Street fairness" law applies to stores with a business "nexus" to the state like Amazon.com. Online retailers without such a presence in the state will still be able to sell goods to Michigan residents without collecting and paying the sales tax.

Michigan estimates $445 million in sales and use tax revenue from remote purchase went uncollected this fiscal year. The law could ensure Michigan receives $60 million more.

Shoppers are supposed to voluntarily pay sales taxes on remote purchases when filing their Michigan tax returns, but very few comply.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.
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