On June 21, 2018, the United States Supreme Court ruled that a state may impose sales tax collection responsibilities on businesses that have no physical presence in the state (remote sellers). See South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).
Due to this ruling, existing provisions in tax laws in many states immediately became effective and out-of-state businesses became obligated to collect sales taxes (primarily from online sales) and remit them to the states to which the products are shipped.
In response to the Supreme Court's decision in South Dakota v. Wayfair, Michigan has updated its sales tax laws to require remote sellers and marketplace facilitators to collect and remit sales tax. As of 2018, Michigan requires remote sellers with sales exceeding $100,000, or 200 or more transactions in the state within the previous calendar year, to register for, collect, and remit Michigan sales tax. This applies to online retailers, mail-order companies, and other businesses that sell products or services to Michigan residents without having a physical presence in the state. Marketplace facilitators, which are platforms that facilitate sales between sellers and buyers, such as Amazon or eBay, are also required to collect and remit sales tax on behalf of sellers using their platform. These requirements aim to level the playing field between in-state and out-of-state businesses and ensure that sales tax is collected consistently regardless of the seller's location.