Bill > HB4979

This bill amends Michigan's Use Tax Act to expand the application of use tax to advertising services, introducing new provisions that require tax collection on these services. Specifically, the bill establishes that advertising services will be taxed similarly to tangible personal property, with the tax applied based on the location of the audience receiving the advertisement. If an advertisement reaches audiences in multiple states, the tax will be proportionally applied to the portion attributable to Michigan-based individuals or businesses, or sourced to the purchaser's billing address if the audience location cannot be reasonably determined. The provider of advertising services will be responsible for collecting and remitting the tax. The bill defines advertising services broadly, including both the creation and distribution of advertisements through various media like internet, television, radio, newspapers, magazines, and billboards. Additionally, the bill specifies that tax revenue collected from advertising services will be deposited into the Michigan Transportation Fund. The changes aim to clarify and modernize the use tax application to digital and modern advertising services, ensuring that these services are taxed consistently with other goods and services under Michigan law.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4979