MI HB5621

Requires sellers to obtain purchaser identifying information and exemption reason at time of purchase or later, using standardized electronic formats adopted under the streamlined sales and use tax agreement.

Shields compliant sellers from tax liability if purchasers improperly claim exemptions, unless the seller fraudulently fails to collect tax, solicits improper exemption claims, or accepts entity-based exemption forms in states where they are explicitly unavailable.

Allows sellers to obtain exemption forms or data within 120 days after sale date without liability, and permits late submission up to 120 days after department request or until assessment becomes final, whichever is later.

Exempts sellers from tax liability when holding blanket exemption forms for customers with recurring business relationships (transactions within 12-month periods), without requiring renewal.

Permits purchasers to claim refunds for missed exemptions within 4 years of purchase by submitting receipts, seller-signed verification forms, exemption claims, and any additional information requested by the department.