Michigan Senate Bill SB0415

Michigan 2023-2024 Regular Session

• Introduced: 6/27/23
• Refer: 6/27/23
• Report Pass: 11/9/23
• Refer: 11/9/23
• Report Pass: 1/17/24
• Engrossed: 1/30/24
• Refer: 1/30/24
• Report Pass: 3/6/24
• Enrolled: 6/4/24
• Chaptered: 6/20/24
• Passed: 6/20/24

Caption

Sales tax: exemptions; identifying information required for claiming exemption; include purchaser's license number issued by the Michigan liquor control commission to satisfy the requirements, and add exemption for micro brewers. Amends secs. 12 & 18 of 1933 PA 167 (MCL 205.62 & 205.68). TIE BAR WITH: SB 0416'23

Impact

The amendments proposed by SB0415 have significant implications for state sales tax laws, particularly pertaining to how exemptions are handled. By requiring sellers to obtain specific identifying information, including license numbers from the Michigan Liquor Control Commission for certain purchasers, the bill aims to streamline the exemption process while providing greater accountability. This could potentially lead to an increase in compliance among sellers regarding the collection of sales tax, thus impacting state revenue positively.

Summary

Senate Bill 0415 aims to amend sections of the 1933 Act concerning sales tax exemptions in Michigan. The bill specifically addresses the requirements for claiming exemptions from sales tax, especially for transactions involving purchasers who are licensed by the Michigan Liquor Control Commission. It establishes a standardized process for sellers to collect identifying information and the reason for any claimed exemption, ensuring that compliance is facilitated during the purchasing process, whether in electronic formats or traditional means.

Sentiment

Sentiment regarding SB0415 appears predominantly supportive, especially among legislators concerned with ensuring proper tax collection and compliance. The inclusion of micro brewers in the exemption considerations reflects a shift towards supporting smaller businesses within the alcohol industry. However, there are concerns from some stakeholders about the increased administrative burdens that could arise for small sellers who may struggle to meet the new documentation requirements, underscoring a cautious approach to regulatory compliance.

Contention

Notable points of contention surrounding this bill involve the balance of regulatory requirements versus the burden placed on small businesses. While proponents argue that the enhancements to the exemption process will foster a fairer market by clarifying tax obligations, critics highlight that additional documentation may disproportionately affect micro brewers and small retailers. The legislative discourse around SB0415 illustrates the ongoing discussion about how best to support local businesses while ensuring that state tax laws are enforced effectively.