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HOUSE BILL NO. 6183
A bill to amend 1993 PA 327, entitled
"Tobacco products tax act,"
by amending section 11 (MCL 205.431), as amended by 2022 PA 171.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) A person, not licensed under this act as either a 1
wholesaler or unclassified acquirer, shall not sell or solicit a 2
sale of a tobacco product to be shipped, mailed, or otherwise 3
imported, sent or brought into this state, to a person in this 4
state that is not licensed under this act, unless the tobacco 5
July 03, 2026, Introduced by Reps. Alexander, Tisdel, Kuhn and Frisbie and referred to Committee
on Finance.
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product is to be sold through a wholesaler or unclassified 1
acquirer, licensed under this act. 2
(2) A person, in this state, that is not licensed under this 3
act, shall not order, purchase, or otherwise engage in a 4
transaction to acquire a tobacco product that is to be shipped, 5
mailed, imported, sent, or brought into this state unless that 6
tobacco product is to be sold through a wholesaler or unclassified 7
acquirer, licensed under this act. A consumer in this state shall 8
not purchase or otherwise acquire a tobacco product through a 9
remote retail sale unless the seller is licensed under this act as 10
an unclassified acquirer. A tobacco product ordered, purchased, or 11
acquired by a person in violation of this subsection is contraband 12
subject to seizure and forfeiture under section 9. A person who 13
that violates this subsection is considered to be in control or 14
possession of a tobacco product in violation of this act for 15
purposes of section 8(1), regardless of whether that tobacco 16
product has been sold, consumed, or otherwise disposed of. Any 17
limitation on the tax applicable to cigars under section 7(1)(b) 18
shall does not apply, or otherwise and must not be taken into 19
account, for purposes of determining the liability for taxes and 20
penalties under section 8(1) arising from a violation of this 21
subsection. 22
(3) Except as provided in section 8(2) regarding 23
representatives of a licensed manufacturer, a retailer in this 24
state shall not purchase, possess, acquire for resale at retail, or 25
sell a tobacco product in this state unless that tobacco product 26
was purchased or otherwise acquired directly from a wholesaler, 27
unclassified acquirer, or secondary wholesaler, licensed under this 28
act. A retailer who that violates this subsection is considered to 29
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be in control or possession of a tobacco product in violation of 1
this act for purposes of section 8(1), regardless of whether that 2
tobacco product has been sold, consumed, or otherwise disposed of. 3
Any limitation on the tax applicable to cigars under section 4
7(1)(b) shall does not apply, or otherwise and must not be taken 5
into account, for purposes of determining the liability for taxes 6
and penalties under section 8(1) arising from a violation of this 7
subsection. 8
(4) A retailer is considered to have purchased or otherwise 9
acquired a tobacco product in compliance with subsection (3) if all 10
of the following conditions are met: 11
(a) The retailer obtains a copy of the license of the 12
wholesaler, secondary wholesaler, or unclassified acquirer at the 13
time of purchase or acquisition. 14
(b) The license described in subdivision (a) was not expired 15
when the tobacco product was purchased or otherwise acquired by the 16
retailer. 17
(c) The copy of the license is preserved by the retailer in 18
the same manner, for the same period of time, and offered for 19
inspection as required of other statements and records under 20
section 6. 21
(5) Notwithstanding anything in this act to the contrary, a 22
licensee may provide a copy of its license to a retailer for 23
purposes of this section. A retailer that obtains a copy of the 24
license for a particular licensee under this section is not 25
required to obtain another copy of the license for subsequent 26
purchases or acquisitions of tobacco products from that licensee 27
that are made during the active license year and before the 28
expiration of that license. 29
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(6) Subject to subsection (1), all sales conducted through the 1
internet, by telephone, or in a mail-order transaction must not be 2
completed unless, before each delivery of tobacco products is made, 3
whether through the mail, through a transportation company, or 4
through any other delivery system, the seller has obtained from the 5
purchaser an affirmation that includes a copy of a valid 6
government-issued document that confirms the purchaser's name, 7
address, and date of birth showing that the purchaser is at least 8
the legal minimum age to purchase tobacco products; that the 9
tobacco products purchased are not intended for consumption by an 10
individual who is younger than the legal minimum age to purchase 11
tobacco products; and a written statement signed by the purchaser 12
that affirms the purchaser's address and that the purchaser is at 13
least the minimum legal age to purchase tobacco products. The 14
statement must also confirm that the purchaser understands that 15
signing another person's name to the affirmation is illegal; that 16
the sale of tobacco products to individuals under the legal minimum 17
purchase age is illegal; and that the purchase of tobacco products 18
by individuals under the legal minimum purchase age is illegal 19
under the laws of the state of Michigan. this state. The seller 20
shall verify the information contained in the affirmation provided 21
by the purchaser against a commercially available database of 22
governmental records, or obtain a photocopy, fax copy, or other 23
image of the valid, government-issued identification stating the 24
date of birth or age of the purchaser. 25
(7) Subject to subsection (1), all invoices, bills of lading, 26
sales receipts, or other documents related to tobacco product sales 27
conducted through the internet, by telephone, or in a mail-order 28
transaction must contain the current seller's valid Michigan sales 29
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tax license number or use tax registration number, business name 1
and address of the seller, and a statement as to whether all sales 2
taxes or use taxes, as applicable, and taxes levied under this act 3
have been paid. All packages of tobacco products shipped from a 4
tobacco product seller to purchasers who reside in Michigan, this 5
state, including consumers in a remote retail sale, must be clearly 6
printed or stamped with the word words "TOBACCO PRODUCTS" on the 7
outside of all sides of the package so it is clearly visible to the 8
shipper. If an order is made as a result of advertisement over the 9
internet, the tobacco retailer, and an unclassified acquirer making 10
a remote retail sale, shall request the email address of the 11
purchaser and shall must receive payment by credit card or check 12
before completing the sale. This subsection does not apply to sales 13
by wholesalers and unclassified acquirers licensed under this act 14
other than remote retail sales. 15
(8) The deliverer of the tobacco products shall obtain proof 16
from a valid government-issued document that the person signing for 17
the tobacco products is the purchaser. 18
(9) A retailer not otherwise licensed or required to be 19
licensed under this act shall post a sign, visible to the public 20
inside the retail establishment that informs purchasers of cigars 21
through catalog sales, telephone or mail orders, or internet sales 22
of their liability for any applicable unpaid state taxes on those 23
cigars and that cigars purchased in violation of this act are 24
contraband. 25
(10) As used in this section: 26
(a) "Computer" means any connected, directly interoperable or 27
interactive device, equipment, or facility that uses a computer 28
program or other instructions to perform specific operations, 29
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including logical, arithmetic, or memory functions with or on 1
computer data or a computer program, and that can store, retrieve, 2
alter, or communicate the results of the operations to a person, 3
computer program, computer, computer system, or computer network. 4
(b) "Computer network" means the interconnection of hardwire 5
or wireless communication lines with a computer through remote 6
terminals or a complex consisting of 2 or more interconnected 7
computers. 8
(c) "Computer program" means a series of internal or external 9
instructions communicated in a form acceptable to a computer that 10
directs the functioning of a computer, computer system, or computer 11
network in a manner designed to provide or produce products or 12
results from the computer, computer system, or computer network. 13
(d) "Computer system" means related, connected or unconnected, 14
computer equipment, devices, software, or hardware. 15
(e) "Credit card" means a card or device issued by a any of 16
the following: 17
(i) A person licensed under 1984 PA 379, MCL 493.101 to 18
493.114. , or 19
(ii) A person licensed under the consumer financial services 20
act, 1988 PA 161, MCL 487.2051 to 487.2072. , or issued by 21
(iii) For 6 months after the effective date of the residential 22
mortgage licensing and supervision act, a depository financial 23
institution, as that term is defined in section 1a of the mortgage 24
brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 25
445.1651a, under a credit card arrangement. 26
(iv) Beginning on the effective date of the residential 27
mortgage licensing and supervision act, a depository institution, 28
as that term is defined in section 3 of the residential mortgage 29
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licensing and supervision act, under a credit card arrangement. 1
(f) "Device" includes, but is not limited to, an electronic, 2
magnetic, electrochemical, biochemical, hydraulic, optical, or 3
organic object that performs input, output, or storage functions by 4
the manipulation of electronic, magnetic, or other impulses. 5
(g) "Internet" means the connection to the World Wide Web 6
through the use of a computer, a computer network, or a computer 7
system. 8
(h) "Sale conducted through the internet" means a sale of, a 9
solicitation to sell, a purchase of, or an offer to purchase 10
tobacco products conducted all or in part by accessing an internet 11
website and includes a remote retail sale. 12
Enacting section 1. This amendatory act does not take effect 13
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 14
Legislature is enacted into law. 15