Presentation to the Detroit Regional Chamber 20th Leadership Policy Conference Grand Hotel, Mackinac IslandJune 3, 2000.
E-Commerce and the Michigan Use Tax
Sales Tax - Adopted 1933
Sales Tax Base
Sales Tax Revenues
Use Tax - Adopted 1937
Use Tax Base
Use Tax Revenues
Which Tax Applies?
"Remote" Sales
Estimated Revenue Lost (Source: Senate Fiscal Agency)
Use Tax Collection Problems
Use Tax Return
MI - 1040, p. 2, line 30
Utilization of sales taxation
Nexus
National Bellas Hess v. Dept. of Revenue, State of Illinois (1967)
Quill Corp. v. North Dakota (1992)
Congressional Response: Internet Tax Freedom Act
ACEC Proposals
"Bright Line" Definition of Nexus ACEC and S.2401
Simplification (ACEC)
Zero Burden System
Arguments for Not Collecting Use Taxes on E-Commerce
Problems with Non-collection of Remote Sales
Remote Sales Taxation Alternatives
Future of Sales Taxation
Email: crcmich@mich.com
Home Page: http://www.crcmich.org/