LANSING For most businesses, the new sales tax laws going into effect September 1 will mean simply more time to file their returns. For the first time, catalog and online purchases fall under the new sales tax, which is an effort to bring the state into compliance with a national streamlined sales tax project.
Some 12 major national retailers have agreed to participate initially in the streamlined sales tax project, but more are expected to join as more states adopt the laws.
The state has already captured some of the sales and use tax revenue that should be flowing from out of state sales, as the number of residents reporting those purchases jumped from 3,000 in 1998 to 64,000 in 1999 when a line asking about the purchases was added to the income tax form.
The state still expects to lose out on $256.8 million in sales and use taxes from out of state purchases for fiscal year 2004-05.
The most significant change will be for retailers. Because the national agreement requires that retailers be given 20 days from the end of a taxing period to submit returns, companies in Michigan will have an extra five days to submit the sales taxes they have collected. The state also added five days to the discount date.
Because the laws are effective September 1, most retailers will see the change for their September tax filing, now due October 20. Some larger retailers that submit accelerated filings will have their September payment due September 20, but Treasury officials said there are only a few hundred of the largest retailers affected by that provision.
The state has also moved filing dates for income withholding and single business tax payments to the 20th of the month to make the payments to consolidate and simplify tax payment and processing.
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