Invest online sales tax in the classroom

In June, the U.S. Supreme Court ruled in South Dakota v. Wayfair Inc. that states can collect sales taxes from out-of-state vendors, paving the way for Michigan to collect the 6 percent sales taxes from online stores that don’t have a physical presence in the state. While this has been touted as new revenue, it actually gives Michigan the ability to collect this tax on products that have avoided it by being sold online.

This is very good news for the state’s bottom line and for school districts. Treasury has estimated this court ruling could bring more than $200 million back into our sales tax revenue. Recall that Michigan collects 6 cents of sales tax. Of that 6 cents, 2 cents are constitutionally dedicated to the School Aid Fund from the passage of Proposal A in 1994 and 60 percent of the remaining 4 cents is also constitutionally dedicated to the School Aid Fund.

Source: Invest online sales tax in the classroom