December 12, 2007, Introduced by Reps. Bieda and Condino 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).
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 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 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 certified service provider shall be
considered a seller and shall be eligible for relief from liability
for sales tax as provided in section 12 of the general sales tax
act, 1933 PA 167, MCL 205.62.