Michigan Legislation

Last Updated on October 21, 2019

The Michigan House of Representatives has passed legislation that would extend sales and use tax collection obligations to marketplace facilitators.  The legislation would require marketplace facilitators to remit sales and use tax for all taxable sales made by the marketplace facilitator or facilitated for marketplace sellers to purchasers in Michigan regardless of whether the marketplace seller has nexus with the state. The marketplace facilitator would be relieved of liability to the extent it could show that a failure to remit tax was due to insufficient or incorrect information submitted by the marketplace seller. It would also be relieved of liability if the marketplace facilitator demonstrates that the tax was paid by the marketplace seller or provides an exemption claim by the marketplace seller’s purchaser.