LANSING – Bills that would force the collection of the sales and use tax on purchases made through online entities that have affiliations in the state were on the Michigan House Tax Policy Committee agenda Wednesday, but were not voted on because House Democrats on the committee were going to abstain from voting.
Rep. Jeff Farrington (R-Utica), chair of the committee, said he thought the bills (HB 4202 and HB 4203 ) had enough votes to be reported from committee. But Farrington said he found out before the meeting on Wednesday that the Democrats on the committee were planning on abstaining from the vote.
Farrington said he did not know why the Democrat committee members decided to pass, and he said it could possibly have been for “political reasons.”
He also said plans for moving the bills are up in the air, since it does not have the votes to be reported from committee.
Rep. Jon Switalski (D-Warren), a member of the committee, said it wasn’t a last minute decision and the Democratic members simply feel the issue is a federal one.
Switalski said the U.S. Senate has passed bills requiring internet retailers to charge the sales and use tax, and he said the U.S. House is “poised” to do so as well.
However, those watching the issue said it seemed Democrats were leveraging their votes in hopes of winning Republican support on other issues.
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