Bill Text: MI HB5004 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Sales tax; collections; collection of tax on internet sales; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 2b.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-09-27 - Printed Bill Filed 09/23/2011 [HB5004 Detail]

Download: Michigan-2011-HB5004-Introduced.html

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HOUSE BILL No. 5004

 

September 22, 2011, Introduced by Reps. Kowall, Ananich, Horn, Olson, Liss, Heise, LeBlanc, Foster, Denby, Ouimet, Rogers, Townsend, Crawford, Lipton, Gilbert, Kandrevas, Callton, Hovey-Wright, Switalski and Roy Schmidt and referred to the Committee on Tax Policy.

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

(MCL 205.51 to 205.78) by adding section 2b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2b. (1) A person who sells tangible personal property to

 

a customer in this state is presumed to be engaged in the business

 

of making sales at retail in this state if an affiliated person,

 

other than a common carrier acting as a common carrier, has a

 

physical location in this state, conducts business activity in this

 

state, or is otherwise subject to the tax under this act or the use

 

tax act, 1937 PA 94, MCL 205.91 to 205.111, and that affiliated

 

person, directly or indirectly, does any of the following:

 

     (a) Sells a similar line of products as the seller and does so

 

under the same business name as the seller or a similar business

 

name.

 

     (b) Uses its employees in this state or facilities in this

 

state to advertise and promote or facilitate sales by the seller to

 

customers in this state.

 

     (c) Maintains an office, distribution facility, warehouse,

 

storage place, or similar place of business in this state to

 

facilitate the delivery of tangible personal property sold by the

 

seller to the seller's customers in this state.

 

     (d) Uses trademarks, service marks, or trade names in this

 

state that are the same or substantially similar to those used by

 

the seller.

 

     (e) Delivers, installs, assembles, or performs maintenance or

 

repair services for the seller's customers in this state.

 

     (f) Facilitates the sale of tangible personal property to

 

customers in this state by allowing the seller's customers in this

 

state to pick up or return tangible personal property sold by the

 

seller at an office, distribution facility, warehouse, storage

 

place, or similar place of business maintained by that affiliated

 

person in this state.

 

     (g) Conducts any other activities in this state that are

 

significantly associated with the seller's ability to establish and

 

maintain a market in this state for the seller's sales of tangible

 

personal property to customers in this state.

 

     (2) If a seller of tangible personal property to customers in

 

this state does not have an affiliated person in this state, that

 

seller is presumed to be engaged in the business of making sales at

 

retail of tangible personal property in this state if the seller

 

enters into an agreement with 1 or more residents of this state

 

under which the resident, for a commission or other consideration,

 

directly or indirectly, refers potential customers, whether by a

 

link on an internet website, in-person oral presentation, or

 

otherwise, to the seller, if the cumulative gross receipts from

 

sales by the seller to customers in this state who are referred to

 

the seller by all residents of this state with such an agreement

 

with the seller is greater than $10,000.00 during the immediately

 

preceding 12 months.

 

     (3) The presumptions under subsections (1) and (2) may be

 

rebutted by demonstrating that the affiliated person, or the

 

residents of this state with whom the seller has an agreement, did

 

not engage in any solicitation or any other activity within this

 

state that was significantly associated with the seller's ability

 

to establish or maintain a market in this state for the seller's

 

sales of tangible personal property to customers in this state.

 

Evidence to rebut the presumptions may consist of written

 

statements from all affiliated persons and residents with whom the

 

seller has an agreement stating that they did not engage in any

 

such solicitation or other activities in this state on behalf of

 

the seller during the preceding year if the statements are provided

 

and obtained in good faith.

 

     (4) As used in this section:

 

     (a) "Affiliated person" means either of the following:

 

     (i) Any person that is a part of the same controlled group of

 

corporations as the seller.

 

     (ii) Any other person or entity that, notwithstanding its form

 

of organization, bears the same ownership relationship to the

 

seller as a corporation that is a member of the same controlled

 

group of corporations.

 

     (b) "Controlled group of corporations" means that term as

 

defined in section 1563(a) of the internal revenue code, 26 USC

 

1563.

 

     Enacting section 1. This amendatory act takes effect 30 days

 

after the date this amendatory act is enacted into law.