July 15, 2019

July 15, 2019

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Michigan Treasury Issues Post- Wayfair Sales and Use Tax Guidance for Remote Sellers

On August 1, 2018, the Michigan Department of Treasury (the "Department") released Revenue Administrative Bulletin (RAB) 2018-16, Sales and Use Tax Nexus Standards for Remote Sellers, in response to the United States Supreme Court decision in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). Unlike South Dakota, Michigan does not have an economic nexus statute currently in place. However, effective October 1, 2018, through the issuance of administrative guidance, the Department will be requiring sales and use tax collection and remittance by remote sellers that had sales of more than $100,000 to Michigan customers, or that had at least 200 separate sales transactions into Michigan during the period from January 1, 2017 - December 31, 2017. Under Michigan law, sellers making taxable retail sales to Michigan purchasers will report and remit sales tax on sales consummated in Michigan. Sellers making sales in which the transfer of ownership of property occurs outside of Michigan will report and remit use tax.

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About this Author

Erin Haney, Tax attorney, Varnum
Associate

Erin is a member of Varnum's Tax Practice Team. As a former senior auditor for the Michigan Department of Treasury, she is experienced in Michigan tax compliance and controversy matters. Erin is also a certified public accountant, and she worked as a tax consultant for a major accounting firm prior to pursuing a career in law. During law school she served as a research assistant reviewing updates for the Guidebook to Michigan Taxes and completed an internship with the United States District Court for the Western District of Michigan.

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Thomas J. Kenny, Varnum, Tax Litigation Attorney, Franchise Income Lawyer
Partner

T

om is a partner on the firm's Tax Practice Team. His practice includes civil and criminal tax litigation. Previously employed by the Department of Attorney General, Tom acted as legal counsel to the Department of Treasury in litigation matters before the Michigan Tax Tribunal, Court of Claims, Court of Appeals and Supreme Court. Prior to his employment with the Michigan Attorney General, he was an assistant prosecuting attorney in Detroit and handled criminal litigation and appeals.

Tom's tax practice focuses on the representation of Fortune 1000 companies in State and Local Tax (SALT) litigation, which includes sales, use, corporate income, motor fuel, tobacco, real and personal property and Michigan Business Tax matters. He has represented clients before administrative agencies and courts in Michigan and around the country. The multistate representation includes tax cases in Indiana, New York, Ohio, Pennsylvania and Tennessee.

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Eric M. Nemeth, Tax Planning Attorney, Varnum, Financial Controversy Lawyer
Partner

Eric is a partner and leads the tax team. He concentrates on tax and financial controversy (IRS and various States) from examinations appellate conferences, criminal investigations, witness representation and civil and criminal tax litigation. He works with government regulatory and general tax matters. He has served as Senior Trial Attorney for the District Counsel of the Internal Revenue Service and as Special Assistant U.S. Attorney for the Department of Justice. He is a frequent speaker on tax enforcement and has served as an expert witness and binding arbitrator....

248-567-7402
Wayne D. Roberts, Corporate tax attorney, Varnum
Counsel

Wayne is a member of Varnum’s Tax Team. His practice includes all aspects of federal and state tax planning and tax litigation. He represents both closely-held and Fortune 100 companies in tax disputes with the IRS, the Michigan Department of Treasury, and revenue departments in Pennsylvania, Indiana, Tennessee, New York, California and numerous other state and local taxing jurisdictions. 

616/336-6892