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2019 House Bill 4542: Authorize state tax collections from out-of-state sellers

Public Act 145 of 2019

Introduced by Rep. Michael Webber R-Rochester on May 2, 2019
To establish a regulatory regime for imposing state sales and use tax on purchases by residents from internet and catalog merchants in other states. 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. House Bills 4542 and 4543 impose a duty on larger out-of-state retailers to collect and remit sales and use tax to this state. House Bills 4540 and 4541 authorize and create rules for smaller retailers selling into the state through third party “marketplace facilitators," which is the model used by   Official Text and Analysis.
Referred to the House Tax Policy Committee on May 2, 2019
Reported in the House on June 19, 2019
Refer to the Committee on Ways and Means with the recommendation that the substitute (H-1) be adopted.
Referred to the House Ways and Means Committee on June 19, 2019
Reported in the House on October 8, 2019
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Received in the Senate on October 22, 2019
Referred to the Senate Finance Committee on October 22, 2019
Reported in the House on November 20, 2019
With the recommendation that the bill pass.
Signed by Gov. Gretchen Whitmer on December 12, 2019