2019 House Bill 4540 ↩

Senate Roll Call 323: Passed

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.