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Mackinac Center for Public Policy
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2004 House Bill 5504: Sales tax on internet and catalog purchases

Public Act 174 of 2004

  1. Introduced by Rep. Paul Condino (D) on February 10, 2004, to authorize the Department of Treasury to negotiate a multi-state agreement to create a centralized system for the collection of use or sales tax on purchases made by Michigan citizens from out-of-state merchants. This would apply to retail purchases made over the Internet or from catalogs. The bill is part of a "streamlined sales tax" package comprised of House Bills 5502 to 5505.
    • Referred to the House Tax Policy Committee on February 10, 2004.
      • Reported in the House on March 30, 2004, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on May 20, 2004, to replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described. The substitute passed by voice vote in the House on May 20, 2004.
    • Amendment offered by Rep. Fulton Sheen (R) on May 20, 2004, to establish that the legislature has the authority to withdraw from the tax collection compact if it determines that doing so is in the best interest of the state. This would require a resolution, which can be passed with majority of those present and voting, rather than a majority of those elected and serving. The amendment passed by voice vote in the House on May 20, 2004.
  2. Passed 78 to 26 in the House on May 20, 2004, to authorize the Department of Treasury to negotiate a multi-state agreement to create a centralized system for the collection of use or sales tax on purchases made by Michigan citizens from out-of-state merchants. This would apply to retail purchases made over the Internet or from catalogs. The bill is part of a "streamlined sales tax" package comprised of House Bills 5502 to 5505. Estimates of how much it would increase the amount of tax paid by citizens range from $30 million to $500 million a year.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 25, 2004.
    • Referred to the Senate Finance Committee on May 25, 2004.
      • Reported in the Senate on June 8, 2004, with the recommendation that the bill pass.
  4. Passed 29 to 7 in the Senate on June 9, 2004, to authorize the Department of Treasury to negotiate a multi-state agreement to create a centralized system for the collection of use or sales tax on purchases made by Michigan citizens from out-of-state merchants. This would apply to retail purchases made over the Internet or from catalogs. The bill is part of a "streamlined sales tax" package comprised of House Bills 5502 to 5505. Estimates of how much it would increase the amount of tax paid by citizens range from $30 million to $500 million a year.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Jennifer Granholm on June 28, 2004.

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