Sales tax: other; deduction or exclusion and audit of qualified delivery network sales; provide for. Amends sec. 2d of 1933 PA 167 (MCL 205.52d).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill clarifies how sales tax is handled when a marketplace facilitator – a company that allows other sellers to sell products on its platform – sells goods in Michigan. It establishes rules for reporting sales tax, limits liability for marketplace facilitators if they receive incorrect information from sellers, and introduces a new provision regarding ‘qualified delivery network sales.’ Specifically, it allows delivery network companies to deduct or exclude certain sales tax payments to marketplace sellers related to delivery services, subject to specific conditions and audits.
Key provisions
- Marketplace facilitators must report sales tax owed on sales made to purchasers in Michigan.
- The department can audit marketplace facilitators for sales facilitated by sellers, unless the facilitator receives insufficient information from the seller.
- Marketplace facilitators can be relieved of liability for tax errors if they demonstrate they received incorrect information from the seller.
- Delivery network companies can deduct or exclude sales tax paid to marketplace sellers for ‘qualified delivery network sales.’
- A ‘qualified delivery network sale’ must involve delivery services, be sourced to Michigan, and have the tax paid by the delivery network company.
- The department can audit both the marketplace seller and the delivery network company for qualified delivery network sales.
- A delivery network company cannot deduct tax if the marketplace seller did not charge them for the tax.
Bill text
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