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HB 5139

Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c). TIE BAR WITH: HB 5138'25, HB 5140'25

2025-2026 Regular Session Introduced by Tom Kuhn and 4 co-sponsors

Michigan requires marketplace facilitators with nexus to collect and remit use tax on all sales for marketplace sellers, centralizing audits and adding attestation rules.

referred to second reading
#usetax:definitions
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WeVote Research Nonpartisan
Bill Summary · HB 5139

Summary — HB 5139 (Use Tax Act amendments: marketplace facilitators)

Status: House bill; filed March 13, 2025; electronically reproduced October 28, 2025. Introduced (Oct. 28, 2025) by Rep. John Roth and referred to the Committee on Economic Competitiveness. Companion/related: SB 2570; tie-bar with HB 5140 (’25) and HB 5138 (’25).

Purpose

Amends the Use Tax Act (1937 PA 94) by revising definitions and collection responsibilities related to marketplace facilitators and marketplace sellers. The stated intent is to expand the statutory definition and clarify who must register, who must collect and remit use tax, and how audits and liability are allocated between marketplaces and sellers.

Key provisions

  • Amends sections 5 and 5c of the Use Tax Act (MCL 205.95 and 205.95c).
  • Marketplace facilitator collection obligation (sec. 5c):
    • A marketplace facilitator with nexus in Michigan must collect and remit use tax on all taxable sales made directly or facilitated for marketplace sellers to Michigan purchasers, regardless of whether the marketplace seller has nexus.
    • Marketplace facilitators are treated as taxpayers under the act and bear the duties and liabilities of a taxpayer.
    • Facilitators must report both direct sales and facilitated sales to the Department of Treasury in a department-prescribed manner.
  • Audit and enforcement:
    • If a facilitator is required to collect under sec. 5c, the Department generally audits the facilitator — not the marketplace seller — for sales facilitated by that facilitator.
    • The Department may audit a marketplace seller only if the seller fails to provide sufficient information to the facilitator such that the facilitator is not liable.
  • Legal claims:
    • Bars statewide class actions against marketplace facilitators in state courts for purchaser claims arising from overcollection of use tax remitted by the facilitator (does not eliminate a purchaser’s right to seek refunds under existing refund procedures).
  • Registration and attestation (sec. 5):
    • Persons subject to the Use Tax Act must register and provide required business location/agent information unless already licensed under the General Sales Tax Act or registered via the Streamlined Sales and Use Tax Agreement.
    • Marketplace sellers of rooms/lodgings that are fully booked and taxed by a facilitator may avoid separate registration if they (a) have all such sales processed as “booking transactions” by a facilitator and (b) file an annual 12‑month attestation with the Department in a prescribed form.
  • Definitions:
    • Expands/clarifies statutory definitions for “marketplace facilitator,” “marketplace seller,” and “booking transaction” by cross-reference to sec. 5c and the Essential Services Tax Enabling Act.

Note: The provided text was truncated at sec. 5c(7); full statutory language should be reviewed for additional definitional or procedural detail.

Who is affected

  • Marketplace facilitators (online platforms, marketplace operators): increased collection, reporting, and remittance responsibilities if they have nexus in Michigan.
  • Marketplace sellers using facilitators: reduced direct filing/audit exposure when facilitators collect and remit, provided they supply required information/attestations.
  • Purchasers: tax still applies; purchasers remain responsible when tax is not collected.
  • Michigan Department of Treasury: administrative tasks for registration, audits, attestations, and reporting.

Procedural history (selected)

  • Filed: 2025-03-13
  • Committee hearings and substitute considered: April 23 & April 30, 2025; reported favorably as substituted (4/30/2025).
  • Committee report filed/distributed: 2025-05-05
  • Electronically reproduced / introduced (text version): 10/28/2025; read first time 10/28/2025; referred to Economic Competitiveness committee.

Potential impacts

  • Likely centralizes tax collection and compliance with marketplace facilitators, reducing compliance burden and audit exposure for many small sellers but imposing administrative obligations on marketplace operators.
  • Could increase state tax compliance and revenue capture from e-commerce sales; fiscal impact would depend on enforcement and marketplace behavior.
  • Limits class-action litigation exposure for facilitators but preserves purchaser refund rights under statutory procedures.

For final statutory language, fiscal analysis, and to assess specific compliance requirements, review the complete bill text (including truncated portions) and any fiscal or administrative reports prepared by the Legislature or the Department of Treasury.

Compiled from official sources — confirm details with the bill’s official record.

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