MI SB0658

Creates statutory nexus standard for sales tax collection by presuming out-of-state sellers engaged in Michigan retail sales if they or affiliated persons conduct qualifying activities in the state, including maintaining facilities, using employees to promote sales, or sharing management systems.

Establishes affiliate nexus provision presuming sellers are engaged in Michigan retail sales if cumulative referral sales from Michigan residents exceed $10,000 in preceding 12 months and seller's total Michigan sales exceed $50,000 in that period.

Allows presumptions to be rebutted by demonstrating activities are not significantly associated with establishing or maintaining market in Michigan, with specific conditions for written agreements and statements from resident referral partners.

Excludes advertisement revenue arrangements from affiliate nexus unless payments consist of commissions or consideration based on completed sales.

Takes effect October 1, 2015, and applies to transactions on or after that date, including referral sales from the 12 months preceding the effective date.