[washata]

I just filled out my Michigan taxes, Is it my memory or did they add a box for you to put in on line and out of state purchases for sales tax?

Do you think any one puts in a nickle in this box? LOL

[TaxBait]

It's been there for quite some time.

[Bydand]

Yeah, been there on the forms I have used for a long time. Never put anything in there myself though.

[tax me gently]

Actually it's use tax, which is the other side of sales tax. Sales tax is imposed on the seller--Use tax is on the buyer.

Some people remit the tax on their purchases from outside the state (that have not already been taxed by the other state).

I recommend putting something on the line. Some day Treasury may subpoena shipping records to find what you've bought and bill you. If you have reported nothing, that could be seen as Failure to File, and they can go back 10 years. If you did "file" they can only go back 4.

[JimmyInGreatLakes]

I don't think Treasury will ever have the manpower to start up a search of everyone's shipping records. That said, I buy a LOT of stuff off Amazon so I check the box and end up paying $50 on this every year. I simply try to be honest.

[tax me gently]

I can verify that the Discovery Division of Treasury has ballooned over the past 10 years. It is cheaper and more cost efficient to do "desk audits" than send an auditor to your door.

Software in use is designed to mine databases. It is already used to search information obtained from other government agencies. For example, how does the state know when you've filed a federal return from a Michigan address, yet you've filed no Michigan return?

It wouldn't be much of a jump to extend it to private company records. Especially if a vendor perfects the process (government agencies love to buy software from outside vendors, as many are politically connected).

So, what would it take? A subpoena to a well-known transportation company for details on all shipments--probably with a stated value of what?..$500 or more... for a period of 3 years. To be provided electronically. To sort and create letters of inquiry at this point would be simple.

And note that this governor is not cut from the "raise no taxes" cloth that many republicans embrace. Rather he appears to favour raising taxes on individuals in order to lower business taxes and balance the budget. This could be a nice little revenue enhancer for him.

[leadsquirter]

I don't buy a lot of stuff online, but when I do most of it comes USPS. With the postal services money problems I just can't picture them being able to to produce records of what was delivered by regular mail to everyone's house and what it was worth.

[MI-Roger]

Retailers with "Brick & Mortar" outlets in Michigan are required to include Michigan Sales Tax on all your on-line orders. A lot of retailers fall into this category since catalog stores like Lands End are actually owned by K-Mart/Sears.

Amazon is a BIG exception! I "assumed" they charged taxes until I checked some old invoices after reading an article describing their pre-emptive exit from South Carolina following failure of a Sales Tax Abatement bill.

[mary54mi]

Wow, I always paid it if I had anything to pay. How long it takes us to see the details sometimes huh?

[Cronous81]

Quite honestly the biggest deterrence is all the leg work involved. Is someone going to keep all their receipts for online orders they purchased in a year organized just to pay a tax? Beyond some things are taxed while others are not. Seriously if the govt wanted a use tax they should sign an agreement with every other state requiring the use tax to be added at the point of sale.