MI HB4203

Requires sellers of tangible personal property to register with the state department and collect use tax if an affiliated person has a physical location in Michigan, conducts business activity in the state, or meets other nexus requirements.

Establishes nexus for tax collection purposes when an affiliated person in Michigan: sells similar products under the same or similar business name, uses employees or facilities to advertise or promote the seller's sales, maintains distribution or storage facilities, uses similar trademarks or trade names, delivers or services products, or facilitates customer pickups or returns.

Requires sellers without affiliated persons in Michigan to register and collect tax if they have agreements with Michigan residents who refer customers for a commission when cumulative gross receipts from referred customers exceed $10,000 in the preceding 12 months.

Allows sellers to rebut the presumption of tax collection obligations by providing written statements from affiliated persons or resident referrers demonstrating they did not engage in solicitation or activities significantly associated with establishing or maintaining a market in Michigan.

Takes effect 30 days after enactment.