LANSING – As word spread Tuesday that the online retail giant Amazon might be looking to hire more workers in Michigan, news that was heralded by the administration, another group continued to press the Legislature to close what it says is a tax loophole that Amazon and others exploit to the detriment of small businesses in the state.
“While we are excited that Amazon plans to increase its investment in Michigan by opening a second Michigan location, the time has come for them to start playing by the same rules as every other Michigan job maker,” James Hallan, President and CEO of the Michigan Retailers Association said in a statement “While Amazon is talking about bringing a number of new jobs into Detroit, the time has come for Lansing to end the special treatment that gives them an artificial leg up against Michigan companies who already employ hundreds of thousands of workers.”
Small businesses say they are losing business every day to Internet stores that do not maintain physical sales locations and do not charge sales tax.
HB 5004 and HB 5005 would fix that loophole and require Internet sellers to collect sales tax in Michigan. While the bills have had several hearings, they remain in the House Tax Policy Committee.
“It’s something we are looking at as to how we address retailers’ concerns, but not discourage companies from creating more jobs in Michigan,” House Republican Spokesperson Ari Adler said.
He said House Speaker Jase Bolger (R-Marshall) would like to see the federal government address the matter.
“Having individual states address this piecemeal is troubling and it’s going to continue to be a problem,” Adler said.
That is the same approach taken by Governor Rick Snyder, who has urged Congress to act before Michigan does.
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