Bill Text: MI HB5620 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Sales tax; exemptions; exemption claim process after sale at retail; modify. Amends sec. 12 of 1933 PA 167 (MCL 205.62).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-06-05 - Assigned Pa 167'18 With Immediate Effect [HB5620 Detail]
Download: Michigan-2017-HB5620-Introduced.html
HOUSE BILL No. 5620
February 21, 2018, Introduced by Rep. Hornberger and referred to the Committee on Tax Policy.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 12 (MCL 205.62), as amended by 2015 PA 251.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) If an exemption from the tax under this act is
claimed, the seller shall obtain identifying information of the
purchaser and the reason for claiming the exemption at the time of
the purchase or at a later date. The seller shall obtain the same
information for a claimed exemption regardless of the medium in
which the transaction occurred.
(2) A seller shall use a standard format for claiming an
exemption electronically as adopted by the governing board under
the streamlined sales and use tax agreement.
(3) A purchaser is not required to provide a signature to
claim an exemption under this act unless a paper exemption form is
used.
(4) A seller shall maintain a proper record of all exempt
transactions and shall provide the record if requested by the
department.
(5) A seller who complies with the requirements of this
section is not liable for the tax if a purchaser improperly claims
an exemption. A purchaser who improperly claims an exemption is
liable for the tax due under this act. This subsection does not
apply if a seller fraudulently fails to collect the tax, solicits a
purchaser to make an improper claim for exemption, or accepts an
exemption form when the purchaser claims an entity-based exemption
if both of the following circumstances occur:
(a) The subject of the transaction sought to be covered by the
exemption form is actually received by the purchaser at a location
operated by the seller.
(b) The state in which that location operated by the seller is
located provides an exemption form that clearly and affirmatively
indicates that the claimed exemption is not available in that
state.
(6) A seller who obtains a fully completed exemption form or
captures the relevant data elements as outlined in this section
within 120 days after the date of sale is not liable for the tax.
(7) If the seller has not obtained an exemption form or all
relevant data elements, the seller may either prove that the
transaction was not subject to tax by other means or obtain a fully
completed exemption form from the purchaser, by the later of the
following:
(a) 120 days after a request by the department.
(b) The date an assessment becomes final.
(c) The denial of a claim for refund.
(d) In the instance of a credit audit, the issuance of an
audit determination letter or informal conference decision and
order of determination.
(e) The date of a final order of the court of claims or the
Michigan tax tribunal, as applicable, with respect to an
assessment, order, or decision of the department.
(8) The department may, in its discretion, allow a seller
additional time to comply with subsection (7).
(9) A seller is not liable for the tax under this act if the
seller obtains a blanket exemption form for a purchaser with which
the seller has a recurring business relationship. Renewals of
blanket exemption forms or updates of exemption form information or
data elements are not required if there is a recurring business
relationship between the seller and the purchaser. For purposes of
this section, a recurring business relationship exists when a
period of not more than 12 months elapses between sales
transactions.
(10) A certified service provider shall be considered a seller
under this section. As used in this section, "certified service
provider" means that term as defined in section 25 of the
streamlined sales and use tax administration act, 2004 PA 174, MCL
205.825.
(11) A purchaser that fails to claim an exemption at the time
of purchase by notifying the seller of the exemption and providing
a complete and valid certificate of exemption may submit a claim
for a refund to the department for the tax related to that purchase
if all of the following conditions are met:
(a) The sale occurred within the time period specified as the
statute of limitations in section 27a of 1941 PA 122, MCL 205.27a.
(b) The purchaser has an accurate record of the purchase,
including, but not limited to, a paper, electronic, or digital
receipt, invoice, or purchase order related to the sale that
includes the amount of sales tax paid for which the purchaser is
seeking a refund under this subsection.
(c) The purchaser received a signed statement from the seller
that the seller reported and paid the tax on the sale for which the
purchaser is seeking a refund under this subsection and did not
claim an exemption at a later date under subsection (7).
(d) The purchaser has completed an exemption certificate to
establish a valid exemption claim related to the sale for which the
purchaser is seeking a refund under this subsection.
