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State Reps. Kowall, Verheulen Introduce Main Street Fairness Bills(Targeted News Service Via Acquire Media NewsEdge) LANSING, Mich., Feb. 6 -- The Michigan House Republicans issued the following news release: State Reps. Eileen Kowall and Rob VerHeulen today announced the introduction of legislation to eliminate special treatment in the tax code, promote Michigan's small businesses and encourage a more competitive and healthy economy. House Bills 4202 and 4203 will require out-of-state online retailers to collect Michigan's 6-percent sales tax and direct it to the state, just as brick-and-mortar companies in Michigan are required to do.Shoppers are already legally obligated to pay the 6-percent use tax on all purchases, but online retailers are not required to collect it. Taxpayers must self-report use taxes on Internet purchases when they complete their income tax return, but many do not know about this requirement and skip the step altogether. The bill package moves the collection of the tax to the point of sale for all retailers, whether they have a physical presence in Michigan or not, which simplifies the tax code across the board for businesses and residents alike. Kowall, who introduced similar legislation last term, says it is well past time to make this change and ensure local businesses are not being punished because the state tax code plays favorites with online retailers. "Our economy runs best when there is healthy competition and every single person has the opportunity to take a chance and succeed in Michigan," said Kowall, R-White Lake. "This legislation is about fairness, about letting businesses compete on the merit of their goods and services, not who has better carve-outs in the tax code. This is a common sense change to make the tax code fairer for every Michigan small business owner." VerHeulen, R-Walker, said: "Equal treatment for every business, large and small, online and brick-and-mortar, is incredibly important to Michigan's economy. We need to ensure fairness for local jobs and local businesses, and become a state that is known for giving everyone a shot at success." The bills, which will be referred to the House Tax Policy Committee, have garnered bipartisan support. TNS JF78JF-130207-4195214 EditorFurigay (c) 2013 Targeted News Service |