Avalara Taxrates > Blog > Internet sales tax > Michigan: New Tax Requirements for Out-of-State Sellers - Avalara

Michigan: New Tax Requirements for Out-of-State Sellers

  • Feb 25, 2015 | Gail Cole

 Michigan prepares for internet sales tax.

On October 1, 2015, Michigan will become the 23rd state to impose sales and use tax on out-of-state sellers. To help those sellers adjust to the new tax landscape, the Michigan Department of Taxation has published a notice of new sales and use tax requirements for remote vendors.

As explained by the department:

“The new law creates a presumption that a seller is engaged in the business of making sales at retail in Michigan if the seller, or another person on the seller’s behalf, engages in or performs certain activities set forth in the new statutory sections in Michigan. In addition, a seller will be presumed to be making sales in Michigan if the seller enters into an agreement with one or more Michigan residents under which the resident, for a commission or other consideration, refers potential purchasers (e.g., by a link on an internet website or an in-person oral presentation), to the seller.”

Businesses are advised to read the new laws--Enrolled Senate Bill No. 658 and Enrolled Senate Bills No. 659—for more specific information.

Affiliate or click-through nexus legislation such as Michigan’s is becoming an increasingly popular way for states to obtain tax revenue from out-of-state sellers. At the federal level, legislation that would grant all states the right to tax remote vendors was approved by the Senate in May 2013 but has been stalled in the House.

Automated sales tax Software-as-a-Service facilitates sales tax management and increases compliance. Learn how it works.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.