Retailers - Retailers make sales to the final consumer. In addition, retailers must be licensed to collect tax from their customers and remit the sales tax to the State of Michigan. Wholesalers - Wholesalers sell to other wholesalers or retailers and not to the final consumer. The price in which the seller sells a product does not determine if the seller is a wholesaler. The determination is based on whom the products are sold to by the seller.
Wholesalers buy for resale at wholesale.
Contractors - A sales tax license is not required for contractors or subcontractors, since they are the final consumers of the materials they affix to real property. Anyone who is directly engaged in the activity of constructing, altering, repairing, or improving real estate for others is liable for the sales tax on the inventory value of the materials affixed to the property. If the real estate being constructed, altered, repaired, or improved is a nonprofit hospital or nonprofit housing entity, no tax is due on any materials which became affixed to and made a structural part of the hospital or housing entity. Services - Businesses repair, improve, or alter tangible personal property owned by others. Businesses, who sell tangible personal property in addition to providing labor or a service, are required to obtain a sales tax license.