Bill Text: MI HB4203 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Use tax; collections; collection of tax on internet sales; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding sec. 5a.
Spectrum: Slight Partisan Bill (Republican 11-6)
Status: (Introduced - Dead) 2014-12-09 - Placed On Third Reading [HB4203 Detail]
Download: Michigan-2013-HB4203-Introduced.html
HOUSE BILL No. 4203
February 6, 2013, Introduced by Reps. VerHeulen, Schor, Heise, Ananich, Cavanagh, Pettalia, Rogers, Schmidt, Lori, Crawford, Lipton, Rendon, Daley, Switalski, Foster, Kowall and Oakes and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
(MCL 205.91 to 205.111) by adding section 5a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5a. (1) A person who sells tangible personal property
shall register with the department and collect the tax levied under
this act, and is personally liable for the tax levied under this
act as provided in section 9, if an affiliated person, other than a
common carrier acting as a common carrier, has a physical location
in this state, conducts business activity in this state, or is
otherwise subject to the tax under this act or the general sales
tax act, 1933 PA 167, MCL 205.51 to 205.78, and that affiliated
person, directly or indirectly, does any of the following:
(a) Sells a similar line of products as the seller and does so
under the same business name as the seller or a similar business
name.
(b) Uses its employees in this state or facilities in this
state to advertise and promote or facilitate sales by the seller to
customers in this state for storage, use, or consumption in this
state.
(c) Maintains an office, distribution facility, warehouse,
storage place, or similar place of business in this state to
facilitate the delivery of tangible personal property sold by the
seller to the seller's customers in this state for storage, use, or
consumption in this state.
(d) Uses trademarks, service marks, or trade names in this
state that are the same or substantially similar to those used by
the seller.
(e) Delivers, installs, assembles, or performs maintenance or
repair services for the seller's customers in this state.
(f) Facilitates the sale of tangible personal property to
customers in this state by allowing the seller's customers in this
state to pick up or return tangible personal property sold by the
seller at an office, distribution facility, warehouse, storage
place, or similar place of business maintained by that affiliated
person in this state.
(g) Conducts any other activities in this state that are
significantly associated with the seller's ability to establish and
maintain a market in this state for the seller's sales of tangible
personal property to customers in this state for storage, use, or
consumption in this state.
(2) If a seller of tangible personal property does not have an
affiliated person in this state, that seller shall register with
the department and collect the tax levied under this act, and is
personally liable for the tax levied under this act as provided in
section 9, if the seller enters into an agreement with 1 or more
residents of this state under which the resident, for a commission
or other consideration, directly or indirectly, refers potential
customers, whether by a link on an internet website, in-person oral
presentation, or otherwise, to the seller, if the cumulative gross
receipts from sales by the seller for storage, use, or consumption
in this state to customers in this state who are referred to the
seller by all residents of this state with such an agreement with
the seller is greater than $10,000.00 during the immediately
preceding 12 months.
(3) The presumptions under subsections (1) and (2) may be
rebutted by demonstrating that the affiliated person, or the
residents of this state with whom the seller has an agreement, did
not engage in any solicitation or any other activity within this
state that was significantly associated with the seller's ability
to establish or maintain a market in this state for the seller's
sales of tangible personal property or services to customers in
this state for storage, use, or consumption in this state. Evidence
to rebut the presumptions may consist of written statements from
all affiliated persons and residents with whom the seller has an
agreement stating that they did not engage in any such solicitation
or other activities in this state on behalf of the seller during
the preceding year if the statements are provided and obtained in
good faith.
(4) As used in this section:
(a) "Affiliated person" means either of the following:
(i) Any person that is a part of the same controlled group of
corporations as the seller.
(ii) Any other person or entity that, notwithstanding its form
of organization, bears the same ownership relationship to the
seller as a corporation that is a member of the same controlled
group of corporations.
(b) "Controlled group of corporations" means that term as
defined in section 1563(a) of the internal revenue code, 26 USC
1563.
Enacting section 1. This amendatory act takes effect 30 days
after the date this amendatory act is enacted into law.
