The 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. It specifies that corporations must register with the department to conduct business in Michigan and outlines the conditions under which a foreign corporation can obtain a certificate of authority. Additionally, it establishes that a marketplace facilitator with nexus in Michigan is responsible for collecting and remitting use tax on all taxable sales made through their platform, regardless of whether the individual sellers have nexus in the state.

Key changes include the insertion of definitions for "marketplace facilitator," "marketplace seller," and "residential dwelling unit," as well as the clarification that a marketplace facilitator is liable for tax on facilitated sales. The bill also provides relief from liability for marketplace facilitators under certain conditions, such as when they can demonstrate that incorrect information from the marketplace seller led to tax collection errors. Furthermore, it removes outdated references to the "corporation, securities, and land development bureau" and replaces them with the "corporations, securities, and commercial licensing bureau," reflecting a modernization of the regulatory framework.

Statutes affected:
Senate Introduced Bill: 205.95