HB-4906, As Passed Senate, October 28, 2009

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4906

 

May 7, 2009, Introduced by Rep. Ebli and referred to the Committee on Tax Policy.

 

     A bill to amend 2004 PA 174, entitled

 

"Streamlined sales and use tax administration act,"

 

by amending section 25 (MCL 205.825), as amended by 2008 PA 437.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 25. (1) A certified service provider is the agent of a

 

seller, with whom the certified service provider has contracted for

 

the collection and remittance of sales and use taxes. As the

 

seller's agent, the certified service provider is liable for sales

 

and use tax due to this state on all sales transactions it

 

processes for the seller unless the seller made a material

 

misrepresentation or committed fraud.

 

     (2) A seller that uses a certified automated system is

 

responsible and is liable to this state for reporting and remitting

 

tax.

 

     (3) A certified service provider or a seller that uses a


 

certified automated system shall be relieved from liability is not

 

liable for sales tax and use tax if it relied on the department's

 

determination that the software program submitted to the board for

 

certification as a certified automated system under the agreement

 

accurately reflected the taxability of the product categories

 

included in the software program. The relief Relief from liability

 

under this section does not apply if a certified service provider

 

or a seller that uses a certified automated system has incorrectly

 

classified an item or transaction into a product category of the

 

certified automated system.

 

     (4) As provided in section 12(9) of the general sales tax act,

 

1933 PA 167, MCL 205.62, a A certified service provider shall be is

 

considered a seller and shall be is eligible for relief from

 

liability for sales tax as provided in section 12 12(9) of the

 

general sales tax act, 1933 PA 167, MCL 205.62.

 

     (5) If the department determines that an item or transaction

 

is incorrectly classified as to its taxability by a certified

 

service provider or by a seller that uses a certified automated

 

system, the department shall notify that certified service provider

 

or seller of the incorrect classification. The certified service

 

provider or seller shall revise the classification within 10 days

 

after receipt of notice from the department. If the classification

 

is not changed within 10 days of notice from the department, the

 

certified service provider or seller that uses a certified

 

automated system is liable for the failure to collect the correct

 

amount of sales or use tax due and owing to this state.