Streamlined Sales and Use Tax Agreement First Quarter Report

April 4, 2025
To Senate Finance, Insurance, and Consumer Protection Committee and House Finance Committee

Dear Committee Members:

Michigan has been a member of the Streamlined Sales and Use Tax Agreement (SSUTA) since 2004. See 2004 PAs 172, 173, 174, and 175. The SSUTA is a multistate agreement between Michigan and 23 other member states. The goal of the SSUTA is to simplify and create more uniformity amongst member states in their sales and use tax statutes and their administration. This reduces the burden of sales and use tax compliance on businesses engaged in selling tangible personal property in interstate commerce for businesses located within and outside of Michigan. Section 13 of the Streamlined Sales and Use Tax Administration Act, MCL 205.813(4), requires the state delegation to provide the Senate Finance, Insurance, and Consumer Protection Committee and House Finance Committee a quarterly report regarding the Streamlined Sales and Use Tax Governing Board’s activities including a recommending any state statutes that are required to be amended for Michigan to be substantially compliant with the SSUTA.

This past quarter, the Governing Board virtually held its annual end of the year meeting on December 20, 2024. During the meeting, SSUTA’s various committees gave updates to the Governing Board regarding the work they have been doing. During the meeting, one amendment to the SSUTA was approved. This amendment provides a definition of “oral healthcare products.” This amendment was added in response to legislative efforts in New Jersey to exempt these products.

The one approved amendment does not require statutory amendments for Michigan to remain in compliance with the SSUTA.

Agenda for the December 20, 2024 Meeting

Governing Board and Streamlined Committee Agendas and Minutes