The Michigan Department of Treasury is reminding shoppers that purchases made on-line are not tax-free during holiday season, or at any other time of year. Michigan’s Use Tax generally applies to transactions in which the retailer does not collect sales tax. This happens most frequently when purchases are made from on-line retailers, through mail-order outlets, or television shopping networks that do not have physical locations in Michigan. Officials say when out-of-state vendors do not collect sales tax on purchases, under Michigan law, the purchaser is responsible for reporting and paying the Use Tax. Taxpayers can report the Use Tax annually when completing and filing their Michigan Individual Income Tax Return. Michigan’s Use Tax is calculated at the rate of 6 percent.