Michigan Laws 205.821 – Models; selection for purposes of collecting and remitting sales and use taxes
Current as of: 2023 | Check for updates
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A seller registered under the agreement may select 1 of the following models for purposes of collecting and remitting sales and use taxes under the agreement:
(a) Model 1. The seller uses a certified service provider to act as the seller’s agent to perform all of the seller’s sales and use tax collection functions other than the seller’s obligation to remit sales or use tax on its own purchases.
Terms Used In Michigan Laws 205.821
- Agreement: means the streamlined sales and use tax agreement. See Michigan Laws 205.803
- Certified automated system: means computer software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction. See Michigan Laws 205.803
- Certified service provider: means an agent certified under the agreement to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases. See Michigan Laws 205.803
- Department: means the department of treasury. See Michigan Laws 205.803
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Seller: means any person who sells, leases, or rents tangible personal property or services to another person. See Michigan Laws 205.803
- Use tax: means the tax levied under the use tax act. See Michigan Laws 205.803
(b) Model 2. The seller uses a certified automated system to perform part of the seller’s sales and use tax collection functions, but the seller retains responsibility for remitting the tax.
(c) Model 3. The seller has sales in at least 5 member states, has total annual sales of $500,000,000.00 or more, has a proprietary system that calculates the amount of tax due in each taxing jurisdiction, and has entered into a performance agreement with the member states establishing a tax performance standard for the seller. For purposes of Model 3, “seller” includes an affiliated group of sellers using the same proprietary system.
(d) Model 4. Any other system approved by the department.