Introduced
by
To establish an administrative and regulatory regime for imposing state sales and use tax on internet and catalog merchants in other states that sell goods to Michigan residents. This follows the 2018 U.S. Supreme Court opinion in South Dakota v. Wayfair that allows states to levy sales and use tax on out of state sellers if a state exempts smaller sellers (less than $100,000 in sales or 200 transactions annually), and creates a collection system that feature, in the words of the opinion, “a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures… and also provides sellers access to sales tax administration software paid for by the State.” The bill is part of a package comprised designed to meet those conditions; it and House Bill 4541 authorize and create rules for smaller retailers selling into the state through third party “marketplace facilitators," which is the model used by Amazon.com. House Bill 4542 and 4543 impose a duty on larger out-of-state retailers to collect and remit sales and use tax to this state.
Referred to the Committee on Tax Policy
Reported without amendment
Refer to the Committee on Ways and Means with the recommendation that the substitute (H-1) be adopted.
Referred to the Committee on Ways and Means
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Passed in the House 110 to 0 (details)
To establish an administrative and regulatory regime for imposing state sales and use tax on internet and catalog merchants in other states that sell goods to Michigan residents. This follows the 2018 U.S. Supreme Court opinion in South Dakota v. Wayfair that allows states to levy sales and use tax on out of state sellers if a state exempts smaller sellers (less than $100,000 in sales or 200 transactions annually), and creates a collection system that feature, in the words of the opinion, “a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures… and also provides sellers access to sales tax administration software paid for by the State.” The bill is part of a package comprised of House Bills 4540 to 4543 that is designed to meet those conditions; it and House Bill 4541 authorize and create rules for third party “marketplace facilitators” that sellers would engage to manage the process.
Referred to the Committee on Finance
Amendment offered
With the recommendation that the bill pass.
Consideration postponed
Passed in the Senate 36 to 0 (details)
To establish an administrative and regulatory regime for imposing state sales and use tax on internet and catalog merchants in other states that sell goods to Michigan residents. This follows the 2018 U.S. Supreme Court opinion in South Dakota v. Wayfair that allows states to levy sales and use tax on out of state sellers if a state exempts smaller sellers (less than $100,000 in sales or 200 transactions annually), and creates a collection system that feature, in the words of the opinion, “a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures… and also provides sellers access to sales tax administration software paid for by the State.” The bill is part of a package comprised of House Bills 4540 to 4543 that is designed to meet those conditions; it and House Bill 4541 authorize and create rules for third party “marketplace facilitators” that sellers would engage to manage the process.
