Internet Sales Tax Legislation Signed Into Law!

December 16, 2019

Governor Whitmer last week signed a four-bill package codifying previously issued administrative guidance on internet sales tax collections and expanding the policy to marketplace facilitators. The legislation is a result of the South Dakota V. Wayfair decision handed down by the U.S. Supreme Court last year.

While the Governor signed this legislation, she did so with hesitation. In her signing letter, she expressed her disappointment in a provision that bans class action lawsuits. Governor Whitmer made it clear that she will never sign legislation with this type of provision again.

This action coincides with the National Conference of State Legislators who put the finishing touches on model legislation designed to bring more uniformity to the taxability of internet purchases. In 2020, the Michigan Chamber will review the model legislation and seek any necessary modification to Michigan’s Sales/Use Tax laws deemed necessary.

After being a primary driver to exclude certain marketplace facilitators from the requirements laid out in the legislation, the Michigan Chamber expects more work will need to be done on this front.

The internet sales tax legislation - now Public Act 143 of 2019 - goes into effect January 1, 2020.

For more information, contact Dan Papineau at dpapineau@michamber.com.