2024 Senate Bill 930

AI Analysis – Experimental

Senate Bill No. 930 aims to amend the General Sales Tax Act to clarify the roles and responsibilities of marketplace facilitators in Michigan regarding sales tax collection and remittance. Key provisions include:

Marketplace Facilitators' Obligations: They are required to collect and remit sales tax on all taxable sales within Michigan, irrespective of the seller's physical presence or nexus in the state.

Definition and Duties: The bill defines what constitutes a marketplace facilitator and outlines their responsibilities for tax reporting.

Prohibition of Class Action Lawsuits: It bars class action lawsuits against marketplace facilitators for sales tax overpayments, though individual purchasers can still seek refunds.

Audit Procedures and Liability Relief: Specifies audit procedures and provides conditions under which facilitators are relieved from liability for tax errors due to incorrect information provided by sellers. It also clarifies that marketplace sellers are not liable for sales tax on transactions made through compliant facilitators.

Qualified Delivery Network Sales: Addresses tax liabilities and audit procedures for these sales, including conditions under which delivery network companies can deduct or exclude tax amounts paid to marketplace sellers.

Exclusions: Clarifies that the definition of a marketplace facilitator does not extend to platforms providing only advertising services without directly engaging in sales activities.