Rep. Filler leading bipartisan effort 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.

“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.”

The legislation, House Bills 5745-46, will allow the Michigan Department of Treasury to let delivery network companies deduct the sales tax they’ve paid to retailers from their own tax liabilities. This change will ensure that no one is taxed twice on the same transaction.

The bills were referred to the House Tax Policy Committee for consideration.

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