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SENATE BILL NO. 965
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending sections 5 and 5c (MCL 205.95 and 205.95c), section 5
as amended by 2007 PA 93 and section 5c as added by 2019 PA 144.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Except as otherwise provided in this subsection or 1
subsection (5), a person subject to the tax under this act shall 2
register with the department and give the name and address of each 3
agent operating in this state, the location of all distribution or 4
sales houses or offices or other places of business in this state, 5
May 14, 2026, Introduced by Senator BELLINO and referred to Committee on Regulatory Affairs.
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and any other information that the department requires relevant to 1
the enforcement of this act. However, a seller holding a sales tax 2
license obtained under the general sales tax act, 1933 PA 167, MCL 3
205.51 to 205.78, is not required to separately register with the 4
department under this act. Every person subject to the tax under 5
this act shall source sales in accordance with section 20 and 6
collect the tax imposed by this act from the consumer. 7
(2) The corporation, corporations, securities, and land 8
development commercial licensing bureau of the department of labor 9
and economic growth licensing and regulatory affairs shall not 10
issue to any foreign corporation subject to the tax under this act 11
a certificate of authority to do business in this state or approve 12
and file the proposed articles of incorporation submitted to it by 13
any domestic corporation authorizing or permitting that corporation 14
to conduct any business subject to the tax under this act unless 15
the corporation submits with the application for the certificate of 16
authority or proposed articles of incorporation an application for 17
registration of the corporation under this act or an application 18
for a sales tax license under the general sales tax act, 1933 PA 19
167, MCL 205.51 to 205.78. The corporations, securities, and 20
commercial licensing bureau shall transmit the application shall be 21
transmitted to the department. by the corporation, securities, and 22
land development bureau. 23
(3) A domestic corporation or a foreign corporation authorized 24
to transact business in this state that submits a certificate of 25
dissolution or requests a certificate of withdrawal from this state 26
shall request a certificate from the department stating that taxes 27
are not due under section 27a of 1941 PA 122, MCL 205.27a, not more 28
than 60 days after submitting the certificate of dissolution or 29
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requesting the certificate of withdrawal. A corporation that does 1
not request a certificate stating that taxes are not due is subject 2
to the same penalties under section 24 of 1941 PA 122, MCL 205.24, 3
that a taxpayer would be subject to for failure to file a return. 4
(4) A lessor may elect to pay use tax on receipts from the 5
rental or lease of the tangible personal property in lieu of 6
payment of sales or use tax on the full cost of the property at the 7
time it is acquired. For tax years that begin after December 31, 8
2001, in order to make a valid election under this subsection, a 9
lessor of tangible personal property that is an aircraft shall 10
obtain a use tax registration by the earlier of the date set for 11
the first payment of use tax under the lease or rental agreement or 12
90 days after the lessor first brings the aircraft into this state. 13
(5) A seller registered under the streamlined sales and use 14
tax agreement who that is not otherwise subject to the tax under 15
this act is not required to register under this section because of 16
the registration under the streamlined sales and use tax agreement. 17
Sec. 5c. (1) Notwithstanding anything to the contrary in this 18
act, a marketplace facilitator that has nexus in this state shall 19
collect and remit the tax due under this act on all taxable sales 20
made by the marketplace facilitator or facilitated for marketplace 21
sellers to a purchaser in this state regardless of whether the 22
marketplace seller for whom sales are facilitated has nexus with 23
this state. 24
(2) A marketplace facilitator is a person liable for the tax 25
imposed under this act, regardless of whether the marketplace 26
facilitator makes only facilitated sales for marketplace sellers or 27
a combination of direct and facilitated sales and has all the 28
rights and duties of a taxpayer under this act. 29
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(3) A marketplace facilitator shall report its direct sales 1
and the sales it facilitates to purchasers in this state in a 2
manner as prescribed by the department. 3
(4) A class action shall not be brought against a marketplace 4
facilitator in any court of this state on behalf of purchasers 5
arising from or in any way related to an overpayment of use tax 6
collected and remitted on sales facilitated by the marketplace 7
facilitator, regardless of whether that claim is characterized as a 8
tax refund claim. Nothing in this subsection affects a purchaser's 9
right to seek a refund as provided under section 14b. 10
(5) Nothing in this section affects the obligation of a 11
purchaser to remit the tax imposed by this act for a taxable 12
transaction on which a marketplace facilitator or marketplace 13
seller does not remit sales or use tax. 14
(6) Except as otherwise provided in this subsection, if a 15
marketplace facilitator is required to collect and remit tax under 16
subsection (1), the department shall audit only the marketplace 17
facilitator for sales made by marketplace sellers that were 18
facilitated by the marketplace facilitator. The department shall 19
not audit a marketplace seller for sales facilitated by a 20
marketplace facilitator required to collect and remit tax under 21
subsection (1) unless the marketplace seller fails to provide the 22
marketplace facilitator with sufficient information to the extent 23
that the marketplace facilitator is not liable under subsection 24
(7). 25
(7) A marketplace facilitator is relieved of liability under 26
this section for failure to collect and remit the correct amount of 27
tax to the extent that the marketplace facilitator demonstrates, to 28
the satisfaction of the department, that the failure was due to 29
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incorrect or insufficient information given to the marketplace 1
facilitator by the marketplace seller. The relief under this 2
subsection does not apply if the marketplace seller is an affiliate 3
of the marketplace facilitator. 4
(8) A marketplace facilitator is relieved of liability under 5
this section if the marketplace facilitator demonstrates, to the 6
satisfaction of the department, that the tax levied under this act 7
on a sale facilitated by the marketplace facilitator was paid to 8
the department by the marketplace seller or provides a claim of 9
exemption provided by the marketplace seller's purchaser. 10
(9) A marketplace seller is not liable for the tax imposed by 11
this act on sales made through a marketplace facilitator required 12
to collect and remit tax under subsection (1) unless the 13
marketplace seller fails to provide the marketplace facilitator 14
with sufficient information to the extent that the marketplace 15
facilitator is not liable under subsection (7). 16
(10) This section applies regardless of whether the 17
marketplace facilitator has a physical presence in this state. 18
(11) As used in this section: 19
(a) "Affiliate" means an affiliated person as that term is 20
defined in section 5a. 21
(b) "Marketplace facilitator" means a person that meets the 22
requirements of subparagraph (i), but does not include a person 23
described in subparagraph (ii), (iii), or (iv): 24
(i) A person is a marketplace facilitator if the person 25
facilitates a retail sale by a marketplace seller by listing or 26
advertising for sale by a marketplace seller in a marketplace, 27
tangible personal property or taxable services and either directly 28
or indirectly through agreements or arrangements with third parties 29
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or its affiliates collecting payment from the customer and 1
transmitting that payment to the marketplace seller for 2
consideration. 3
(ii) Marketplace facilitator does not include a person who 4
operates a platform or forum that provides internet, print, 5
electronic, or any other form of advertising services, including 6
listing tangible personal property or services for sale, if the 7
person does not also engage directly or indirectly, through 1 or 8
more affiliates, in the activities described in subparagraph (i). 9
(iii) A person is not a marketplace facilitator with respect to 10
the sale of or charges for rooms, lodgings, or accommodations that 11
are described in section 3a if the rooms, lodgings, or 12
accommodations are provided by a hotelkeeper, motel operator, or 13
other person that is registered under section 5 or licensed under 14
section 3 of the general sales tax act, 1933 PA 167, MCL 205.53.and 15
are not residential dwelling units. 16
(iv) A person is not a marketplace facilitator with respect to 17
the sale of telecommunications services as described in section 3a. 18
(c) "Marketplace seller" means a person that makes retail 19
sales through a physical or electronic marketplace operated by a 20
marketplace facilitator. 21
(d) "Residential dwelling unit" means a cabin, house, trailer, 22
vehicle, or structure, or portion thereof, that is used, or 23
designed to be used, as a residence or home of 1 or more 24
individuals. 25