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