Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › GENERAL SALES AND USE TAX RULES › Section R. 205.13 - Casual or isolated sales

Current through Vol. 24-12, July 15, 2024
Rule 13.
(1) Sales
				  at retail must not include an isolated transaction made other than in the
				  ordinary course of repeated and successive transactions of a like character,
				  which includes, but is not limited to, a situation where an individual sells
				  personal household furniture, a farmer sells farm machinery or other farm
				  equipment, or a merchant sells a cash register, counters or other store
				  fixtures at auction or otherwise. These sales are casual or isolated
				  transactions and are not subject to tax. However, any individual who in any
				  manner or at any time advertises, solicits, or offers tangible personal
				  property for sale for the purpose of repeated sales is determined to be
				  regularly engaged in business and those sales are not considered casual or
				  isolated, even though they may be few or infrequent.
(2) Vehicles, aircraft other than a qualified
				  aircraft under section
				  11 of the streamlined sales and
				  use tax revenue equalization act, 2004 PA 175, MCL
				  205.181, ORVs, manufactured
				  housing, snowmobiles, and watercraft acquired in an isolated transaction from a
				  person that is not a retailer are subject to an equalization tax. The
				  equalization tax on vehicles, snowmobiles, and watercraft must be paid to the
				  secretary of state before the transfer of a vehicle title, snowmobile
				  registration, or watercraft registration. The equalization tax on the
				  transactions is imposed at a rate of 6% of the retail dollar value of the item
				  at the time of acquisition. The equalization tax on the transfer of aircraft,
				  other than a qualified aircraft under section
				  11 of the streamlined sales and
				  use tax revenue equalization act, 2004 PA 175, MCL
				  205.181, must be paid directly to
				  the department of treasury by the purchaser. The equalization tax on
				  manufactured housing must be collected by the secretary of state before the
				  transfer of the certificate of title. All use tax exemptions also apply to the
				  equalization tax. Credit is given for any use tax paid against equalization tax
				  that is due on the same transaction.
(3) A person that is not licensed as an
				  automobile dealer by the secretary of state is presumed to be in the business
				  of making retail sales when selling or offering for sale 3 or more used
				  vehicles in the previous 12 months.
(4) A person that holds a single sales event
				  per calendar year, such as a garage or yard sale to sell personal household
				  items, that lasts no longer than 3 consecutive days, is not making sales at
				  retail and is not liable for tax on the transactions.
(5) The tax base under the streamlined sales
				  and use tax revenue equalization act, 2004 PA 175, MCL
				  205.179, is the retail dollar
				  value of the property as listed in an industry accepted pricing guide
				  applicable to the property. It is solely within the department of treasury's
				  discretion to determine if a pricing guide is industry accepted.