Return to top. Freight, shipping and handling charges are considered part of the price of the goods. Price is defined in the Use Tax Act as the aggregate value of anything paid to the seller in the consummation and complete performance of the transaction. If the business collects tax, the customer must pay the tax. Businesses are registered and authorized to collect the tax.
Credit is given for state or local tax paid in another state or local jurisdiction.
Michigan law does not have a provision that allows credit for tax paid in another country or U.S. territory. If the item was returned for full credit, tax is not owed. As a purchaser you should maintain records of what is purchased and, if applicable, how it is used. Return to top. Tangible personal property used or consumed in industrial processing is tax-exempt.