HB 5323 Summary

• Amends sections 14a and 14b of the 1937 Use Tax Act (MCL 205.104a and 205.104b) regarding exemption claims and record-keeping requirements.

• Requires sellers to obtain identifying information and the reason for claiming an exemption from purchasers at the time of purchase or later, and maintain records of all exempt transactions for department inspection.

• Specifies that a seller complying with exemption documentation requirements is not liable for tax if a purchaser improperly claims an exemption, except in cases of fraud or when accepting exemption forms for entity-based claims at seller locations where the exemption is not available.

• Allows sellers 120 days after a sale to obtain completed exemption forms or relevant data elements, and permits purchasers to claim refunds within 4 years if they submit proper documentation and a seller-signed form confirming the tax was reported and paid.

• Effective immediately upon enactment (February 1, 2022).