2007 House Bill 4386 (FY 2008 Executive Budget “Revenue Enhancements” ) (House Roll Call 102)
Passed in the House (60 to 48) on April 17, 2007, to create an "affiliate nexus" standard which would disregard a business’s form of organization as a defense to a determination by the state that a nonresident affiliate company without a physical presence in Michigan has a “nexus” here for purposes of requiring payment of the Michigan sales, use, income and business taxes. The U.S. Supreme Court has determined that states can only require sellers with a physical presence or “nexus” in a state to collect and tender sales or use tax on retail sales to residents, including Internet or catalog sales. The bill would extend the requirement to affiliates of companies with “nexus” in Michigan under certain circumstances. This is one of a number of “tax expenditure repeal” proposals proposed to pay for higher spending in the Fiscal Year 2007-2008 budget, and would increase the amount certain businesses pay by approximately $3.6 million. [History, Amendments & Comments]
The vote was 60 in favor, 48 opposed, and 2 not voting
(House Roll Call 102 at House Journal 35)
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The following legislators supported 2007 House Bill 4386 (FY 2008 Executive Budget “Revenue Enhancements” ):
The following legislators opposed 2007 House Bill 4386 (FY 2008 Executive Budget “Revenue Enhancements” ):
The following legislators did not vote on 2007 House Bill 4386 (FY 2008 Executive Budget “Revenue Enhancements” ):
| Emmons (R) | Garfield (R) |
Most Recent Comments
1) Rep. Agema's "no vote explanation" [by Admin003 on April 18, 2007]Rep. Agema, having reserved the right to explain his protest against the passage of the bill, made the following statement:
"Mr. Speaker and members of the House:
Unconstitutional to charge taxes to businesses that have no physical presence."
Reply
Introduced in the House on March 1, 2007, to create an "affiliate nexus" standard which would disregard a business’s form of organization as a defense to a determination by the state that a nonresident affiliate company without a physical presence in Michigan has a “nexus” here for purposes of requiring payment of the Michigan sales, use, income and business taxes. The U.S. Supreme Court has determined that states can only require sellers with a physical presence or “nexus” in a state to collect and tender sales or use tax on retail sales to residents, including Internet or catalog sales. The bill would extend the requirement to affiliates of companies with “nexus” in Michigan under certain circumstances. This is one of a number of “tax expenditure repeal” proposals proposed to pay for higher spending in the Fiscal Year 2007-2008 budget, and would increase the amount certain businesses pay by approximately $3.6 million
The vote was 60 in favor, 48 opposed and 2 not voting
(House Roll Call 102 at House Journal 35)
Click here to view bill details.
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