2013 Senate Bill 658 / 2014 Public Act 553

Impose “Amazon tax” on internet purchases

Introduced in the Senate

Oct. 31, 2013

Introduced by Sen. Jim Ananich (D-27)

To essentially impose sales tax on many catalog or internet purchases made from sellers outside the state, by placing in statute a broad definition of “nexus,” or affiliation with a different business that is located in Michigan, in the manner pioneered by internet retailer Amazon.com. Out of state sellers the meet this definition would have to collect Michigan sales tax.

Referred to the Committee on Economic Development

Dec. 4, 2014

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Dec. 11, 2014

Passed in the Senate 21 to 16 (details)

Received in the House

Dec. 11, 2014

Referred to the Committee on Tax Policy

Dec. 19, 2014

Amendment offered by Rep. Eileen Kowall (R-44)

To establish Oct. 1, 2015 as the effective date of the new tax collection requirement.

The amendment passed by voice vote

Passed in the House 83 to 27 (details)

To essentially impose sales tax on many catalog or internet purchases made from sellers outside the state, by placing in statute a broad definition of “nexus,” or affiliation with a different business that is located in Michigan, in the manner pioneered by internet retailer Amazon.com. Out of state sellers the meet this definition would have to collect Michigan sales tax. Reportedly the measure was adopted by the House as part of a $1.945 billion tax hike deal for roads and other spending.

Received in the Senate

Dec. 19, 2014

Passed in the Senate 25 to 13 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 31, 2014