HB-5855, As Passed House, April 19, 2006
March 14, 2006, Introduced by Reps. Sheen, Taub, Gaffney, Hansen, Stahl, Hoogendyk, Vander Veen, Elsenheimer, Brandenburg, Garfield, Pastor, Drolet, Gosselin, Acciavatti, Ball, Casperson, Marleau, Robertson, Pavlov, Jones, Moolenaar and Walker and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 5 (MCL 205.95), as amended by 2004 PA 172.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Except as otherwise provided in this subsection or
subsection (5), a person engaged in the business of selling
tangible personal property for storage, use, or other consumption
in this state shall register with the department and give the name
and address of each agent operating in this state, the location of
all distribution or sales houses or offices or other places of
business in this state, and any other information that the
department requires relevant to the enforcement of this act.
However, a seller holding a sales tax license obtained under the
general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, is not
required to separately register with the department under this act.
Every seller shall source sales in accordance with section 20 and
collect the tax imposed by this act from the consumer.
(2)
The corporation, securities, and land development
bureau
of
the department of consumer and industry services corporation
division of the department of labor and economic growth shall not
issue to any foreign corporation engaged in the business of selling
tangible personal property a certificate of authority to do
business in this state or approve and file the proposed articles of
incorporation submitted to it by any domestic corporation
authorizing or permitting that corporation to conduct any business
of selling tangible personal property unless the corporation
submits with the application for the certificate of authority or
proposed articles of incorporation an application for registration
of the corporation under this act or an application for a sales tax
license under the general sales tax act, 1933 PA 167, MCL 205.51 to
205.78. The application shall be transmitted to the department by
the corporation,
securities, and land development bureau
corporation division of the department of labor and economic
growth.
(3) A domestic corporation or a foreign corporation authorized
to transact business in this state that submits a certificate of
dissolution or requests a certificate of withdrawal from this state
shall request a certificate from the department stating that taxes
are not due under section 27a of 1941 PA 122, MCL 205.27a, not more
than 60 days after submitting the certificate of dissolution or
requesting the certificate of withdrawal. A corporation that does
not request a certificate stating that taxes are not due is subject
to the same penalties under section 24 of 1941 PA 122, MCL 205.24,
that a taxpayer would be subject to for failure to file a return.
(4) A lessor may elect to pay use tax on receipts from the
rental or lease of the tangible personal property in lieu of
payment of sales or use tax on the full cost of the property at the
time
it is acquired. For tax years that begin after December 31,
2001
1999 and before January 1,
2002, in order to make a valid
election under this subsection, a lessor of tangible personal
property that is an aircraft shall obtain a use tax registration by
the earlier of the date set for the first payment of use tax under
the
lease or rental agreement or 90 150
days after the lessor
first brings the aircraft into this state. For tax years that begin
after December 31, 2001, in order to make a valid election under
this subsection, a lessor of tangible personal property that is an
aircraft shall obtain a use tax registration by the earlier of the
date set for the first payment of use tax under the lease or rental
agreement or 90 days after the lessor first brings the aircraft
into this state.
(5) A seller registered under the streamlined sales and use
tax agreement who is not otherwise subject to the tax under this
act is not required to register under this section because of the
registration under the streamlined sales and use tax agreement.