Michigan House Bill HB5139

Michigan 2025-2026 Regular Session

• Introduced: 10/28/25
• Refer: 10/28/25

Caption

Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c). TIE BAR WITH: HB 5140'25, HB 5138'25

Impact

The implementation of HB 5139 is expected to significantly alter the landscape of tax compliance for electronic commerce within Michigan. By making marketplace facilitators responsible for tax collection, the bill reduces the administrative burden on individual sellers who may have previously been confused about their tax obligations. This change aims to increase compliance rates and enhance revenue generation for the state while simplifying the tax process for various businesses operating online. However, this also means that marketplace facilitators must adapt to new reporting requirements and ensure accuracy in their tax remittance processes.

Summary

House Bill 5139 aims to amend the Michigan Use Tax Act by expanding the definitions of marketplace facilitators and refining the requirements for tax collection and remittance. This bill is specifically designed to address the taxation of sales facilitated through online platforms, ensuring that taxes are collected and remitted by marketplace facilitators on behalf of the marketplace sellers. With this amendment, marketplace facilitators will be included as liable for the use tax on sales made to Michigan customers, regardless of whether the marketplace sellers have a physical presence in the state.

Contention

One notable point of contention surrounding HB 5139 concerns the potential for increased operational costs for marketplace facilitators. Critics argue that the expanded liabilities could deter new online businesses from entering the Michigan market. Additionally, there are concerns about the broad definitions of 'marketplace facilitator' and how they may unintentionally affect small businesses or individuals who primarily operate without a significant presence. An emphasis on ensuring that the definitions do not overly penalize smaller operations or impose excessive regulatory burdens remains a central focus within the discussions surrounding the bill. Lawmakers will likely need to balance the ease of compliance with the need to protect smaller players in the marketplace.