Online Sales Tax Goes into Effect Monday in Michigan

If you do most of your shopping online - heads up!

Beginning Monday, a 6% sales tax will be implemented on most online orders. The Michigan Department of Treasury says that online and mail-order retailers must pay the tax "...on all transactions on taxable sales in the state..." They expect this will bring an an extra $203 million in the first year. The state's treasurer told the Detroit News that the money will go to local governments, the school-aid fund and general fund. However, Governor Snyder wants the money to be used to repair the roads.

According to the Detroit News, many states have already adopted this after the Supreme Court made it legal for them to collect that tax money, in June.

As of October 1st, any out-of-state business that makes more than $100,000 in sales or 20 transactions in Michigan (in a calendar year) will be required to report and pay the state tax.