LANSING – Michigan can collect the 6 percent sales taxes from online stores that don’t have a physical presence in Michigan — thanks to a U.S. Supreme Court decision last week.

In a 5-4 ruling, Justice Anthony Kennedy, who wrote the majority’s opinion, said the rule established in Quill Corp. v. North Dakota that a business must have a physical presence in a state to collect and remit sales tax “is unsound and incorrect,” and the court overturned that 1992 case in its ruling Thursday in South Dakota v. Wayfair Inc. 

“From a retailers association’s perspective, we are very happy about this ruling,” Meegan Holland, vice president of communications at the Michigan Retailers Association, said. “In fact, retailers have been waiting for a couple decades. It brings commerce into the 21st century . . . and levels the playing field.”

Department of Treasury spokesman Ron Leix called it an “important step forward in the fair administration of our tax system.” He said the Treasury Department will review the decision and assess its impact on Michigan in the coming days.

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