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Michigan Joins 17 Other States to Collect Internet Sales Tax

The Detroit News reports that beginning October 1, 2005, Michigan and 17 other states will work together to persuade online and mail-order retailers to collect state and local sales taxes. The Streamlined Sales Tax Project provides computer software and other items to make it easier for out-of-state retailers to calculate and collect the tax. While states can't force out-of-state retailers to collect the tax, state law requires Michigan residents to pay the 6% sales tax on items they buy over the Internet or from catalog retailers in other states. The state hopes to net $8 million to $12 million in the first year of the voluntary program.

Read Tax plan targets Web sales in the Detroit News

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