HB4202 Summary

• Establishes presumption that out-of-state sellers making sales to Michigan customers are engaged in retail sales business in Michigan if an affiliated person has physical location in state or conducts business activity in state.

• Affiliated person presumption applies if they: sell similar products under same/similar business name, use employees/facilities to advertise and promote sales, maintain distribution/warehouse facilities, use same trademarks/service marks, deliver/install/repair products, or facilitate customer pickups/returns.

• Creates alternative presumption for sellers without in-state affiliated persons if they enter into referral agreements with Michigan residents that generate more than $10,000 in cumulative gross receipts over preceding 12 months.

• Allows sellers to rebut presumptions by providing written statements from affiliated persons or residents demonstrating they did not engage in solicitation or activities significantly associated with establishing/maintaining market in Michigan.

• Takes effect 30 days after enactment.