MI HB5133

Creates exemptions from Michigan use tax for advertising and promotional direct mail when purchaser provides seller with direct payment authorization, exemption form, or delivery jurisdiction information.

Requires sellers to source advertising and promotional direct mail sales to jurisdictions where mail is delivered; if no jurisdiction information provided, sourcing follows standard section 20(1)(e) rules.

Allows purchasers with direct payment authorization or exemption forms to self-report and pay applicable taxes directly rather than requiring sellers to collect.

Applies sourcing rules only to transactions where direct mail services are integral to production and distribution; excludes transactions involving significant data processing or billing development services.

Effective 90 days after enactment (September 7, 2016); repeals former section 13 of the use tax act.