Legislation introduced to ensure fairness for personal shopping businesses | Newsradio WOOD 1300 and 106.9 FM

LANSING, Mich. — The Michigan House Tax Policy Committee will take up legislation to prevent delivery services like InstaCart and Shipt from being double-taxed.

Sponsors of the two bipartisan measures – House Bills 5745-46 – say they are designed to ensure fairness for personal shopping businesses.

State Rep. Graham Filler has introduced a plan to support local retailers and the delivery services they utilize to connect with customers. The bipartisan effort with Rep. Alabas Farhat (D-Dearborn) seeks to address and correct the issue of double taxation currently burdening delivery network companies like InstaCart and Shipt.

Under the current law, delivery companies that work with local merchants must collect and pay sales tax on transactions. However, these companies are also paying sales tax when they buy goods from local retailers. This means they are being taxed twice for the same transaction.

Per a news release from State Rep. Graham Filler’s office, the legislation would allow delivery network companies to deduct the sales tax they’ve paid to retailers from their own tax liabilities.

“Our goal is to ensure fairness and stop the double taxation that hurts delivery companies,” said Filler, R-Duplain Township. “By fixing this, we can support local businesses and make it easier for them to operate.”

Many small retailers don’t have the technology to handle these tax issues at the point of sale. As a result, delivery network companies end up paying tax twice—once when they buy goods from the retailer and again when they collect tax from the consumer.

“Local businesses rely on delivery services to compete with larger companies,” Filler said. “By allowing these delivery networks to deduct the sales tax they’ve already paid, we can reduce their financial burden and help them continue supporting small businesses.”

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