SB 416 Summary

• Requires sellers to obtain identifying information of purchasers and reason for claiming exemptions at time of purchase or later, with information requirements consistent across all transaction mediums.

• Permits sellers licensed as wholesalers, authorized distribution agents, or micro brewers by the Michigan Liquor Control Commission to satisfy exemption requirements by obtaining the purchaser's liquor license number instead of other documentation.

• Allows purchasers who failed to claim exemptions at time of sale to file refund claims within 4 years if they provide purchase records, seller confirmation form, and proper exemption documentation to the department.

• Protects sellers from tax liability when they comply with exemption requirements and a purchaser improperly claims an exemption, unless the seller fraudulently fails to collect tax, solicits improper exemption claims, or accepts entity-based exemptions that are unavailable in the state.

• Effective only if Senate Bill 415 of the 102nd Legislature is also enacted into law (tie-bar provision).