Last week, the Michigan Senate passed legislation 21-16 that requires online retailers to charge Michigan's sales tax on Internet purchases from residents in the state. Under current law, online retailers only have to charge the tax if they have a physical presence in the state, like a storefront. However, the legislation changes current law by clarifying that physical presence in Michigan also includes things like warehouses, storage spaces, or contracting with installers or repair personnel.

State Sen. Patrick Colbeck, R-Canton, who voted against the bills, was quoted in the Detroit Free Press saying he wasn't opposed in principle to treating online retailers the same as businesses with storefronts in the state, but objected to the bills being taken up without much debate. "I have not had time to review these bills, and when you start talking about Main Street Fairness and interstate commerce, this is not something you want to rush through," he said.

Similar versions were passed out of a House committee last year and are awaiting a vote by the full House. Find more information on eBay Inc.’s position on Internet sales taxes.