This bill amends the Use Tax Act of 1937 by updating sections 5 and 5c to clarify the registration and tax collection responsibilities of corporations and marketplace facilitators. Notably, it introduces new provisions that exempt certain marketplace sellers from registration requirements if they meet specific conditions, such as having all sales facilitated by a marketplace facilitator that is responsible for tax remittance. Additionally, the bill specifies that marketplace facilitators must collect and remit taxes on all taxable sales made through their platforms, regardless of whether the marketplace sellers have nexus in the state.

The bill also modifies the language regarding the obligations of corporations seeking to do business in Michigan, requiring them to register for tax purposes before receiving a certificate of authority. It removes outdated references to the "land development bureau" and updates the department responsible for issuing business certificates to the "licensing and regulatory affairs" bureau. Furthermore, it clarifies the liability of marketplace facilitators and sellers concerning tax remittance, ensuring that facilitators are not held liable if they can demonstrate that the seller provided incorrect information. Overall, these amendments aim to streamline tax compliance and clarify the roles of various entities in the tax collection process.

Statutes affected:
House Introduced Bill: 205.95