2004 House Bill 5505 / Public Act 175

Sales tax on internet and catalog purchases

Introduced in the House

Feb. 10, 2004

Introduced by Rep. James Koetje (R-86)

To make changes to state sales and use tax statutes to accommodate a multi-state agreement to create a centralized system for the collection of use tax on purchases made by Michigan citizens from out-of-state merchants through catalogs or the Internet. The bill "insulates" taxes on certain items from changes that might be required under the agreement by removing them from the sales and use tax acts to a new statute. The bill is part of a "streamlined sales tax" package comprised of House Bills 5502 to 5505.

Referred to the Committee on Tax Policy

March 30, 2004

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 20, 2004

Substitute offered

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

Passed in the House 78 to 26 (details)

Received in the Senate

May 25, 2004

Referred to the Committee on Finance

June 8, 2004

Reported without amendment

With the recommendation that the bill pass.

Amendment offered

To move back the date the bill goes into effect, from July 1 to Sept. 1, 2004.

The amendment passed by voice vote

June 9, 2004

Passed in the Senate 29 to 7 (details)

To make changes to state sales and use tax statutes to accommodate a multi-state agreement to create a centralized system for the collection of use tax on purchases made by Michigan citizens from out-of-state merchants through catalogs or the Internet. The bill "insulates" taxes on certain items from changes that might be required under the agreement by removing them from the sales and use tax acts to a new statute. The bill is part of a "streamlined sales tax" package comprised of House Bills 5502 to 5505.

Received in the House

June 9, 2004

June 22, 2004

Passed in the House 78 to 29 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Jennifer Granholm

June 28, 2004