Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c).

Senate Bill 965 updates Michigan's use tax laws to clarify registration requirements for businesses and strengthen rules for online marketplace facilitators. The bill mandates that foreign corporations must register for use tax before obtaining permission to do business in the state and requires aircraft lessors to pay use tax on lease receipts instead of sales tax on the full property cost. It also defines marketplace facilitators as entities that must collect and remit use tax on sales made by third-party sellers on their platforms, even if those sellers do not have a physical presence in Michigan. Additionally, the bill limits the ability to sue marketplace facilitators for overpaid taxes and protects them from liability if sellers fail to provide accurate information about their transactions.