How is the MI FairTax collected?
Retail businesses collect the tax from the consumer, just as the state sales tax is collected today; the MI FairTax simply replaces the current line on the current sales tax reporting form. Retailers just collect the tax and send it to the state taxing authority. Retailers that choose to do so can likely deposit taxable sales receipts into a special account at banks, and the banks can remit to the state the tax due for them.
