Michigan Laws 205.823 – Computation of tax remitted
Current as of: 2023 | Check for updates
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(1) In computing the amount of tax remitted to this state, a certified service provider under Model 1 described in section 21 may take a deduction from the revenue collected under Model 1 in this state as determined by the contract between the board and that certified service provider. The deduction under this section may be based on 1 or more of the following:
(a) A base rate applicable to taxable transactions processed by the certified service provider for this state.
Terms Used In Michigan Laws 205.823
- Agreement: means the streamlined sales and use tax agreement. See Michigan Laws 205.803
- Board: means the governing board under the agreement. 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
- Contract: A legal written agreement that becomes binding when signed.
- General sales tax act: means 1933 PA 167, MCL 205. See Michigan Laws 205.803
- Sales tax: means the tax levied under the general sales tax act. See Michigan Laws 205.803
- Seller: means any person who sells, leases, or rents tangible personal property or services to another person. See Michigan Laws 205.803
- State: means any state of the United States or the District of Columbia. See Michigan Laws 205.803
- Use tax: means the tax levied under the use tax act. See Michigan Laws 205.803
- Use tax act: means 1937 PA 94, MCL 205. See Michigan Laws 205.803
- Voluntary seller: means a seller who does not have a requirement to obtain a license or register to collect the sales or use tax for this state. See Michigan Laws 205.803
(b) For a voluntary seller, a percentage of tax revenue generated for this state by that voluntary seller for a period not to exceed 24 months after the voluntary seller registered under the agreement.
(2) In computing the amount of tax remitted to this state, a seller who has selected Model 2 as described in section 21 may take a deduction in addition to the deductions taken under section 4 of the general sales tax act or section 4f of the use tax act for a period not to exceed 24 months after the seller registered under the agreement equal to 1 or more of the following:
(a) For all sellers, a base rate established by the board after the base rate is established for certified service providers under subsection (1).
(b) For a voluntary seller, a percentage of tax revenue generated for this state by that voluntary seller.
(3) In computing the amount of tax remitted to this state, a seller who has selected Model 3 as described in section 21 or a seller who has not selected any model described in section 21 may take the deductions under section 4 of the general sales tax act or section 4f of the use tax act. In addition, a voluntary seller who selected Model 3 or a voluntary seller who has not selected any model described in section 21 may take a deduction for a period not to exceed 24 months after the seller registered under the agreement equal to a percentage, determined by the board, of tax revenue generated for this state by that voluntary seller.