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Michigan legislature considers taxing online purchases

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LANSING (WKZO) -- A package of bills goes before the House Tax Policy committee this morning that retailers say will help them compete with online sellers.

If passed, the laws would require Internet companies to collect sales tax on all purchases made by Michigan residents.  Similar legislation is under review in the U.S. Senate.  State supporters, though, hope that lawmakers in Lansing will pass this legislation so the state doesn't have to wait until the feds make a decision.

Brick and mortar retailers have said it's becoming increasingly difficult to compete with online retailers, in part, because people save on the sales tax when buying on the Internet.

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