The Michigan Department of Treasury announced in a press release issued today (Monday, August 13th), “a change to the state’s sales tax administration that will require many mail order and online retailers located outside of Michigan to pay the 6 percent sales tax on taxable sales into this state.” And it goes into effect October 1st.
This comes on the heels of a U.S. Supreme Court ruling.
In June, the U.S. Supreme Court overturned a more than 30-year precedent in South Dakota v. Wayfair, allowing the Michigan Department of Treasury to collect sales tax from retailers physically located outside the state if the retailer exceeds $100,000 in sales or 200 or more transactions in Michigan within the previous calendar year.
Under the state Treasury Department’s new administrative requirement, all applicable mail order and online retailers physically located outside of Michigan must pay state sales tax and file tax returns for taxable sales made after Sept. 30, 2018.
The state Treasury Department estimates more than $200 million in additional state revenues will be collected annually under the new sales tax rule.