MI HB5132

Establishes tax sourcing rules for advertising and promotional direct mail, allowing sellers relief from tax collection obligations if purchasers provide direct payment authorizations, exemption forms, or delivery jurisdiction information.

Requires sellers to source advertising and promotional direct mail sales to delivery jurisdictions based on purchaser-provided information and collect applicable taxes, with safe harbor protection for good faith sourcing.

Applies default sourcing rules under section 19(1)(e) for advertising and promotional direct mail when purchasers provide no authorization, exemption form, or delivery information.

Defines "other direct mail" to include transactional mailings (invoices, bills), legally required mailings (tax reports, privacy notices), and informational pieces to existing customers or employees, with sourcing per section 19(1)(c).

Effective September 7, 2016; repeals prior section 21 of the General Sales Tax Act.