Online Sales "Use Tax"?

alley00p · 12-06-2008, 02:19 PM

In Michigan, you are supposed to claim anything that has been purchased online and pay the state's 6% sales tax. This is pretty much universally ignored by most Michigan residents.

One of my co-workers used to order his cigarettes from indian reservations with no taxes at all (Michigan also has a .75/pack tax on cigarettes and 26% on the wholesale price of cigars and other tabacco). Our Governor, Jenny Granholm filed suit on all of the online cigarette vendors, requiring them to turn over any Michigan resident's sales records.

Shortly after this event, my co-worker received a letter from the State Treasurer, telling him that he owed the state $300 in taxes and penalties. And on top of that, they told him that he was in violation of Act something or other, and if he did this again, he would be prosecuted.

So, I waiting to see what will happen regarding all of the online sales I've made this year. But I'm not voluntarily planning to declare anything! Our local B&M's already have to charge the 26% tax along with the 6% sales tax on any cigars that are sold.

View Poll Results: Will you declare your out-of-state "use tax"?
Yes	1	4.00%
No	24	96.00%
Voters: 25. You may not vote on this poll

12-06-2008, 02:19 PM	#8
alley00p Adopted MassHole Join Date: Oct 2008 First Name: Charlie Location: HOCKEYTOWN! Posts: 1,770 Trading: (41)	Re: Online Sales "Use Tax"? In Michigan, you are supposed to claim anything that has been purchased online and pay the state's 6% sales tax. This is pretty much universally ignored by most Michigan residents. One of my co-workers used to order his cigarettes from indian reservations with no taxes at all (Michigan also has a .75/pack tax on cigarettes and 26% on the wholesale price of cigars and other tabacco). Our Governor, Jenny Granholm filed suit on all of the online cigarette vendors, requiring them to turn over any Michigan resident's sales records. Shortly after this event, my co-worker received a letter from the State Treasurer, telling him that he owed the state $300 in taxes and penalties. And on top of that, they told him that he was in violation of Act something or other, and if he did this again, he would be prosecuted. So, I waiting to see what will happen regarding all of the online sales I've made this year. But I'm not voluntarily planning to declare anything! Our local B&M's already have to charge the 26% tax along with the 6% sales tax on any cigars that are sold. __________________ Alley00p - I may be a FOG, but I'm still trying to dance!! Just don't trip over my cane!