Snyder wants to collect sales tax from online retailers

Snyder wants to collect sales tax from online retailers

It's a habit that can be hard to break.  The past few years, shopping online has become easier and faster.  With just a tap of the finger, magic can occur.

Instead of driving from store to store, Sarah North heads to cyberspace where the selection is plenty and the deals can be deep.

"I don't like to overpay for things, so I want the cheapest price I can pay for the best quality," she said.  "It's easy to find that online."

While online retailers cash in, the State of Michigan is losing out, millions of dollars a year in lost sales revenue.  However, that could soon change.

Governor Rick Snyder is proposing a new law that would allow the state to collect a six-percent sales tax from online retailers.

Right now, if a business doesn't have a brick and mortar store in the state, they don't have to charge a sales tax, and many consumers don't want to pay one.

Doug Ramsey runs Deco Doug. He has mixed feelings about the proposal.  Cyberspace allows him to peddle his goods to the world.  The sales tax could chase them away, but it might also attract customers that discover online shopping isn't such a deal.

"If it drives people to my business instead of shopping online, that would be a plus," he said.

The loss of sales revenue isn't just a Michigan problem.  More than a dozen states are fighting back, changing their laws to be able to collect an Internet sales tax.