skip to main content
X

Services

Tax

We’re committed to relieving the tax burdens of businesses, individuals, and families. With a careful assessment of your situation, our tax professionals develop a uniquely customized strategy for your tax planning needs with the objective of minimizing your tax liability. 

SOUTH DAKOTA V. WAYFAIR DECISION LEADS TO SALES TAX LAW CHANGES IN MICHIGAN

August 21, 2018

SOUTH DAKOTA V. WAYFAIR DECISION LEADS TO SALES TAX LAW CHANGES IN MICHIGAN

Pursuant to the South Dakota v. Wayfair ruling, the Michigan Department of Treasury has announced that beginning Oct. 1, 2018, remote sellers, regardless of in-state presence, who meet certain requirements, must pay sales tax on transactions of taxable sales in the state. The Supreme Court decision in June has led to several states enacting new legislation pertaining to the collection of sales tax based on "economic presence". 

After Sept. 30, 2018, a seller that has sales into Michigan (both taxable and non-taxable) exceeding $100,000, or a seller that completes 200 or more separate transactions of sales into this state (both taxable and non-taxable) in the previous calendar year, has economic nexus in Michigan and is required to remit sales or use tax on all of its taxable sales into Michigan and file all required returns. 

Remote sellers must review their 2017 calendar year sales (i.e., Jan. 1, 2017-Dec. 31, 2017) to determine if they have exceeded either of the economic nexus thresholds, and therefore have nexus in Michigan after Sept. 30, 2018. Remote sellers that only have nexus due to exceeding either of these economic thresholds are not liable for any tax, penalty, or interest for any transactions occurring on or before Sept. 30, 2018. 

Once a seller has nexus due to its economic presence it must remit tax until a calendar year passes in which it does not meet either of the economic nexus thresholds ($100,000 sales or 200 or more separate sales transactions).

Hide Firm Disclaimer

©2020 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP and UHY Advisors, Inc. are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY LLP and/or UHY Advisors (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.