Michigan Compiled Laws

Mich. Comp. Laws § 205.99 (2026)

Personal liability of seller or certified service provider for failure to collect tax; definition.

✓ current as of July 2026

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USE TAX ACT

Act 94 of 1937

205.99 Personal liability of seller or certified service provider for failure to collect tax; definition.

Sec. 9.

(1) If a seller or certified service provider who is required or authorized to collect the tax fails to do so, the seller or certified service provider is liable personally for the amount the seller or certified service provider failed to collect together with penalty and interest on the tax. In that case, the department has the power to make an assessment against the seller or certified service provider, based upon any information in or that comes into the department's possession. The department shall give to the seller or certified service provider written notice of the assessment. The notice may be served upon the seller or certified service provider personally or by registered mail, addressed to the last known or business address.

(2) As used in this section, "certified service provider" means that term as defined in section 3 of the streamlined sales and use tax administration act.

History: 1937, Act 94, Eff. Oct. 29, 1937 ;-- CL 1948, 205.99 ;-- Am. 1949, Act 273, Eff. July 1, 1949 ;-- Am. 1959, Act 263, Eff. Sept. 1, 1959 ;-- Am. 1959, Act 272, Eff. Jan. 1, 1960 ;-- Am. 2004, Act 172, Eff. Sept. 1, 2004

Notes of Decisions

Cited in 3 cases, 1998–2004 · leading case: World Book, Inc v. Dep't of Treasury, 590 N.W.2d 293 (Mich. 1999).

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World Book, Inc v. Dep't of Treasury, 590 N.W.2d 293 (Mich. 1999). · cites it 4× “[MCL 205.99; MSA 7.555(9).] Finally, the use tax provides criminal sanctions for a seller’s failure to comply either with the collection requirements or with any other provisions of the act: Any seller who fails, neglects or refuses to collect the tax as required by this act, or…”

Michigan Bell Tel. Co. v. Dep't of Treasury, 581 N.W.2d 770 (Mich. Ct. App. 1998). “555(5)(a), requires each seller to collect the “tax imposed by this act from the consumer,” and, in addition, § 9, MCL 205.99; MSA 7.555(9), imposes certain tax liabilities for the seller’s failure to do so: In case any seller who is required or authorized to collect the tax…”

S Abraham & Sons, Inc. v. Dep't of Treasury Gitzen Co., 677 N.W.2d 31 (Mich. Ct. App. 2004). “Michigan Bell, supra at 213-214, citing MCL 205.99, MCL 205.106. The plaintiff telephone company asserted that it should not be liable to pay the use tax owed by its customers to the state unless it had actually collected the tax, Michigan Bell, supra at 204, whereas the…”

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