Skip to main content
Streamlined Sales and Use Tax Agreement Fourth Quarter Report

Streamlined Sales and Use Tax Agreement Fourth Quarter Report

December 6, 2024
To Senate Finance, Insurance, and Consumer Protection Committee and House Tax Policy 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 House Tax Policy 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 held its annual Fall meeting in Charlotte, NC on October 8th and 9th.  During the meeting, SSUTA’s various committees gave updates to the Governing Board regarding the work they have been doing.  Notably, the Governing Board found Michigan (among other member states) currently in substantial compliance with the SSUTA.

The Governing Board also rejected an amendment to the SSUTA that would have allowed for a state to have multiple state tax rates, but approved multiple other amendments to the SSUTA:

  • Disclosed practices related to trade shows/nexus, registration requirements
  • Schema changes to the registration system and Simplified Electronic Return
  • Updates to the certificate of compliance
  • Changes to the issue resolution process

None of the approved amendments require statutory amendments for Michigan to remain in compliance with the SSUTA. The full agenda from the Fall meeting can be found here: https://www.streamlinedsalestax.org/docs/default-source/gb-agendas/agenda---sstgb-mtg--october-2024---charlotte.pdf?sfvrsn=96d4de90_10

Agendas and minutes for the Governing Board and all Streamlined committees can be found at https://www.streamlinedsalestax.org/library?SelectedDocumentType=Agreement+Documents.