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Hi Shopify,
I already commented under another person's question about this same issue but I haven't yet received a response so hopefully I can get some help here.
Currently, our shop is set to collect Michigan sales tax and I also have it set to collect tax on shipping as well. Both have worked beautifully up until September when we noticed that tax on shipping was no longer being collected. Our settings are still turned on to collect tax on Michigan sales tax as well as shipping, but only the sales tax is still being collected.
I've tried deselecting and reselecting the "Charge tax on shipping rates" box several times. We are receiving email notifications that our settings have changed, but when we test an online sale it is still not collecting tax on shipping for our state.
Please help! Our auditors say that we are still required to collect tax on shipping on our items.
Tax issues are so frustrating and confusing! I looked briefly at Michigan tax laws and it looks like they changed things up mid-2023. I found some more information here https://www.michigan.gov/taxes/business-taxes/delivery-and-installation-charges. I hope this helps!