Introduced
by
To create an "affiliate nexus" standard which would disregard a business’s form of organization as a defense to a determination by the state that a nonresident affiliate company without a physical presence in Michigan has a “nexus” here for purposes of requiring payment of the Use Tax. The U.S. Supreme Court has determined that states can only require sellers with a physical presence or “nexus” in a state to collect and tender sales or use tax on retail sales to residents, including Internet or catalog sales. The bill would extend the requirement to affiliates of companies with “nexus” in Michigan under certain circumstances. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget.
Referred to the Committee on Tax Policy
