Michigan Compiled Laws
Act 94 of 1937 - Use Tax Act (205.91 - 205.111)
Section 205.95c - Marketplace Facilitators; Nexus; Report; Class Action Prohibited; Audit; Liability; Conditions; Definitions.

Sec. 5c.
(1) Notwithstanding anything to the contrary in this act, a marketplace facilitator that has nexus in this state shall collect and remit the tax due under this act on all taxable sales made by the marketplace facilitator or facilitated for marketplace sellers to a purchaser in this state regardless of whether the marketplace seller for whom sales are facilitated has nexus with this state.
(2) A marketplace facilitator is a person liable for the tax imposed under this act, regardless of whether the marketplace facilitator makes only facilitated sales for marketplace sellers or a combination of direct and facilitated sales and has all the rights and duties of a taxpayer under this act.
(3) A marketplace facilitator shall report its direct sales and the sales it facilitates to purchasers in this state in a manner as prescribed by the department.
(4) A class action shall not be brought against a marketplace facilitator in any court of this state on behalf of purchasers arising from or in any way related to an overpayment of use tax collected and remitted on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a purchaser's right to seek a refund as provided under section 14b.
(5) Nothing in this section affects the obligation of a purchaser to remit the tax imposed by this act for a taxable transaction on which a marketplace facilitator or marketplace seller does not remit sales or use tax.
(6) Except as otherwise provided in this subsection, if a marketplace facilitator is required to collect and remit tax under subsection (1), the department shall audit only the marketplace facilitator for sales made by marketplace sellers that were facilitated by the marketplace facilitator. The department shall not audit a marketplace seller for sales facilitated by a marketplace facilitator required to collect and remit tax under subsection (1) unless the marketplace seller fails to provide the marketplace facilitator with sufficient information to the extent that the marketplace facilitator is not liable under subsection (7).
(7) A marketplace facilitator is relieved of liability under this section for failure to collect and remit the correct amount of tax to the extent that the marketplace facilitator demonstrates, to the satisfaction of the department, that the failure was due to incorrect or insufficient information given to the marketplace facilitator by the marketplace seller. The relief under this subsection does not apply if the marketplace seller is an affiliate of the marketplace facilitator.
(8) A marketplace facilitator is relieved of liability under this section if the marketplace facilitator demonstrates, to the satisfaction of the department, that the tax levied under this act on a sale facilitated by the marketplace facilitator was paid to the department by the marketplace seller or provides a claim of exemption provided by the marketplace seller's purchaser.
(9) A marketplace seller is not liable for the tax imposed by this act on sales made through a marketplace facilitator required to collect and remit tax under subsection (1) unless the marketplace seller fails to provide the marketplace facilitator with sufficient information to the extent that the marketplace facilitator is not liable under subsection (7).
(10) This section applies regardless of whether the marketplace facilitator has a physical presence in this state.
(11) As used in this section:
(a) "Affiliate" means an affiliated person as that term is defined in section 5a.
(b) "Marketplace facilitator" means a person that meets the requirements of subparagraph (i), but does not include a person described in subparagraph (ii), (iii), or (iv):
(i) A person is a marketplace facilitator if the person facilitates a retail sale by a marketplace seller by listing or advertising for sale by a marketplace seller in a marketplace, tangible personal property or taxable services and either directly or indirectly through agreements or arrangements with third parties or its affiliates collecting payment from the customer and transmitting that payment to the marketplace seller for consideration.
(ii) Marketplace facilitator does not include a person who operates a platform or forum that provides internet, print, electronic, or any other form of advertising services, including listing tangible personal property or services for sale, if the person does not also engage directly or indirectly, through 1 or more affiliates, in the activities described in subparagraph (i).
(iii) A person is not a marketplace facilitator with respect to the sale of or charges for rooms, lodgings, or accommodations described in section 3a if the rooms, lodgings, or accommodations are provided by a hotelkeeper, motel operator, or other person that is registered under section 5 or licensed under section 3 of the general sales tax act, 1933 PA 167, MCL 205.53.
(iv) A person is not a marketplace facilitator with respect to the sale of telecommunications services as described in section 3a.
(c) "Marketplace seller" means a person that makes retail sales through a physical or electronic marketplace operated by a marketplace facilitator.
History: Add. 2019, Act 144, Eff. Jan. 1, 2020 Compiler's Notes: Enacting sections 1 and 2 of Act 144 of 2019 provide:"Enacting section 1. As provided in section 5 of 1846 RS 1, MCL 8.5, this amendatory act is severable.""Enacting section 2. This amendatory act takes effect January 1, 2020. An obligation to collect sales tax under this amendatory act does not apply retroactively."

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 205 - Taxation

Act 94 of 1937 - Use Tax Act (205.91 - 205.111)

Section 205.91 - Use Tax Act; Short Title.

Section 205.92 - Definitions.

Section 205.92b - Additional Definitions.

Section 205.92c - Definitions.

Section 205.93 - Tax Rate; Applicability to Tangible Personal Property or Services; Conversion to Taxable Use; Penalties and Interest; Presumption; Using, Storing, or Consuming Vehicle, Orv, Manufactured Housing, Aircraft, Snowmobile, or Watercraft;...

Section 205.93a - Tax for Use or Consumption; Services; Charges for Intrastate Telecommunications Services or Telecommunications Services Between State and Another State; Bundled Transaction; Definitions.

Section 205.93b - Tax for Use or Consumption; Mobile Wireless Services; Customer's Place of Primary Use; Record; Reliance Upon Exempt Status for Mobile Wireless Services; Repeal of Section; Condition; Air-Ground Radiotelephone Service; Bundled Transa...

Section 205.93c - Sale of Telecommunications Services; Definitions.

Section 205.93d - Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.

Section 205.93e - Persons Providing Services Subject to Tax; Collection; Refund; Liability for Failure to Collect Tax; Remittance; Certain Collections or Penalties by Department of Treasury Prohibited.

Section 205.93f - Use or Consumption of Medical Services Provided Under Social Welfare Act; Tax; "Medical Services" Defined.

Section 205.94 - Use Tax; Exemptions; Limitation.

Section 205.94a - Additional Exemptions.

Section 205.94b, 205.94c - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94d - Exemptions; Food or Drink From Vending Machines; Definitions.

Section 205.94e - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94f - Computing Monthly Tax Payments; Deductions by Seller Collecting Tax From Purchaser; Disallowance of Deduction; Deduction for Extended Payment Period; Filing Estimated Returns and Annual Periodic Reconciliations; Registration Under S...

Section 205.94g - Exemption of Property Purchased as Part of Purchase or Transfer of Business; Exceptions; Definition.

Section 205.94h - Tax Inapplicable to Property for Use in Qualified Business Activity.

Section 205.94i - Exemption for Drop Shipments; Definition.

Section 205.94j - Exemption of Motor Vehicle Acquired by Towing Company From Police Agency; Definitions.

Section 205.94k - Tax Inapplicable to Parts and Materials Affixed to Certain Aircraft, Sale of Aircraft, Rolling Stock, and Qualified Truck or Trailer; Definitions.

Section 205.94l - Storage, Use, or Consumption of Rail Freight or Passenger Cars, Locomotives or Other Rolling Stock, Roadway Machines and Certain Work Equipment; Applicability of Tax; Exception.

Section 205.94m - Personal Property Affixed to or Made Structural Part of Sanctuary; Applicability of Tax; “Regularly Organized Church or House of Religious Worship” or “Sanctuary” Defined.

Section 205.94n - Electricity, Natural Gas, and Home Heating Fuels for Residential Use; Exemption From Use Tax at Additional Rate.

Section 205.94o - Exemptions; Limitation; Industrial Processing; Definitions.

Section 205.94p - Extractive Operations; Exemption; Limitation; Eligible Property; Definitions.

Section 205.94q - Central Office Equipment or Wireless Equipment; Presumption.

Section 205.94r - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94s - Nonprofit Hospital or Nonprofit Housing; Sale of Personal Property to Person in Business of Constructing, Altering, Repairing, or Improving Real Estate; Tax Exemption; Definitions.

Section 205.94u - Storage, Use, or Consumption of Investment Coins and Bullion; Applicability of Tax; Definitions.

Section 205.94v - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94w - Applicability of Tax; Exceptions; Definitions.

Section 205.94x - Tax Exemption; Resident Tribal Member.

Section 205.94y - Storage, Use, or Consumption of Automobile Provided by Family Independence Agency or Qualified Organization; Applicability of Tax.

Section 205.94z - Certain Property Affixed to or Made Structural Part of Qualified Convention Facility; "Qualified Convention Facility" Defined.

Section 205.94aa - Storage, Use, or Consumption of Tangible Personal Property for Use as or at Mineral-Producing Property; Exemption; "Mineral-Producing Property" and "Taxpayer" Defined.

Section 205.94bb - Applicability of Tax to Certain Transfers.

Section 205.94cc - Data Center Equipment; Exemption From Tax; Conditions; Report; Definitions.

Section 205.94dd - Improvements to Real Property Included Within Transformational Brownfield Plan; Applicability of Tax Levy Applied to Tangible Personal Property; "Eligible Property" and "Transformational Brownfield Plan" Defined.

Section 205.94ee - Storage, Use, or Consumption of Certain Tangible Personal Property Acquired by a Contractor; Exemption From Tax.

Section 205.94ff - Sales of Certain Prosthetic Devices; Exemption; Definitions.

Section 205.95 - Registration Requirements; Seller to Collect Tax From Consumer; Foreign Corporations; Dissolution or Withdrawal of Corporation; Election of Lessor on Payment of Taxes; Registration Under Streamlined Sales and Use Tax Agreement.

Section 205.95a - Sale of Tangible Personal Property; Nexus With State; Presumptions; Purchase of Advertisements; Agreement; Effectiveness of Section; Definitions.

Section 205.95b - Seller of Tangible Personal Property or Services; Nexus; Conditions; Application to Transactions After October 1, 2018; Inclusion of Sales of Marketplace Facilitator and Marketplace Seller; Exception; Definitions.

Section 205.95c - Marketplace Facilitators; Nexus; Report; Class Action Prohibited; Audit; Liability; Conditions; Definitions.

Section 205.96 - Use Tax Returns; Filing; Form; Contents; Payment of Tax; Remittance for Certain Total Tax Liability After Subtracting Tax Payments; Electronic Funds Transfer; Filing Other Than Monthly Returns; Accrual to State; Due Date.

Section 205.96a - Reepaled. 2006, Act 673, Eff. Jan. 1, 2011.

Section 205.96c - Aviation Fuel; Informational Report; "Aviation Fuel" Defined.

Section 205.97 - Liability for Tax.

Section 205.98 - Direct Payment Authorization.

Section 205.99 - Personal Liability of Seller or Certified Service Provider for Failure to Collect Tax; Definition.

Section 205.99a - Bad Debt Deduction.

Section 205.100 - Administration of Tax; Conflicting Provisions; Rules; Filing Claims for Refund; Payment of Refunds; Payment of Refund Filed for Interstate Access Telephone Services; Tax Imposed Under Tobacco Products Tax Act.

Section 205.100a - Receipt and Collection of Local Community Stabilization Share.

Section 205.101 - Refund or Credit for Returned Tangible Personal Property or Service; Written Notice.

Section 205.101a - Selling or Quitting Business; Final Return; Withholding of Purchase Money to Cover Taxes, Interest, and Penalties; Liability for Failure to Withhold Purchase Money; Purchaser Liability for Taxes, Interest, and Penalties of Former O...

Section 205.102 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.

Section 205.103 - Repealed. 2016, Act 160, Eff. Sept. 7, 2016.

Section 205.103a - Sales of Advertising and Promotional Direct Mail; Sales of Other Direct Mail; Direct Payment Authorization or Exemption Form Provided by Purchaser; Limitation; Definitions.

Section 205.104 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.

Section 205.104a - Inventory and Records; Maintenance; Preservation; Tax Liability; Failure to File Return or Preserve Records; Tax Assessment; Basis; Indirect Audit; Information Exception; Blanket Exemption; "Indirect Audit Procedure" and "Suffici...

Section 205.104b - Exemption Claimed by Purchaser; Duties of Seller; Process to Claim Exemption After Purchase.

Section 205.105 - Failing to Register; Penalty.

Section 205.106 - Seller's Failure to Comply With Act; Penalty.

Section 205.107 - Computation of Tax Amount; Rounding Up to Whole Cent.

Section 205.108 - Consumer's Failure to Comply With Act; Making False Statement; Penalty.

Section 205.109 - Collection or Payment of Tax; Benefit to State, Authority, and Metropolitan Areas.

Section 205.110 - Sourcing Requirements.

Section 205.111 - Deposit and Disbursement of Money; Definitions.