reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.54 - Automobile and other vehicle sales

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) Sales
				  of new and used automobiles, buses, trucks, tractors, trailers, housetrailers,
				  motorcycles, motor scooters, and other vehicles for consumption or use are
				  subject to the tax on the full retail sales price. The sales price includes the
				  total amount of consideration, including cash, credit, property, and services,
				  for which the vehicle is sold, whether received in money or otherwise, and
				  without any deductions for federal taxes, freight, handling, delivery,
				  commissions, repossessions, advertising, future free service, or any expense
				  incurred as part of the cost of doing business. The sales tax must be paid to
				  the secretary of state when the application of title is submitted by the
				  dealer.
(2) In calculating the
				  retail sales price of a motor vehicle subject to tax, if separately stated on
				  the invoice, bill of sale, or similar document given to the purchaser, the
				  following may be excluded:
(a) The agreed-upon
				  value of a vehicle used as partial payment to a dealer, subject to the
				  limitations set forth in
				  R 205.15.
(b) Interest, financing, or carrying charges
				  from credit extended on the sale of the vehicle.
(c) Taxes legally imposed directly on the
				  consumer.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.55 - Sale of Automotive Parts

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) Sales
				  at retail of automotive parts for consumption or use are taxable. Every
				  retailer of automotive parts, such as a garage, car dealer, or service station,
				  shall have a sales tax license. Sales for resale by a wholesaler to a licensed
				  retailer are exempt.
A wholesaler is liable for the tax for retail sales to the
					 consumer or user, including a person with a sales tax license who purchases
					 automotive parts or tools, equipment, and supplies for consumption or use. For
					 instance, the sale of piston rings to a duly licensed garage operator is exempt
					 if the rings are to be resold over the counter to a person that will install
					 them, sold in connection with repair work for a customer, or installed in a
					 used car that the retailer has purchased or taken as trade-in, which is being
					 reconditioned for sale. However, the sale of the rings to the retailer is
					 taxable if the retailer installs them in a vehicle maintained for the
					 retailer's own use, such as a wrecker used in the retailer's business or a car
					 maintained for use by the retailer's family.
(2) Any amount allowed or allowable as a
				  trade-in, exchange, or deposit is part of the gross proceeds subject to tax.
				  Beginning January 1, 2017, any core charges attributable to a recycling fee,
				  deposit, or disposal fee for a motor vehicle or recreational vehicle part or
				  battery are excluded if the core charge is separately stated on the invoice,
				  bill of sale, or similar document given to the purchaser. See
				  R 205.15.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.65 - Churches and houses of religious worship

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1)
				  Sales, not for resale, to regularly organized churches and houses of religious
				  worship are not subject to the tax if the item purchased is paid for by the
				  church from church funds; however, sales of property used in a commerical
				  enterprise by a church or house of religious worship, and sales of vehicles
				  licensed for use on the public highways, are taxable. Sales of tangible
				  personal property, including sales of meals in a commercial activity, when
				  conducted as a retail business for gain, benefit, or advantage, direct or
				  indirect, are taxable, and a sales tax license shall be obtained for the
				  purpose of reporting and paying the tax due.
(2) Sales to religious organizations and
				  societies composed of church members are taxable.
(3) Sales of merchandise to be given as
				  prizes in games of skill or chance are taxable.
(4) Sales to all church employees for their
				  own use are taxable.
(5) If an
				  exemption is to be claimed, the seller, at the time of transfer of the tangible
				  personal property, shall retain, as part of the seller's records, an executed
				  exemption certificate which reads as follows:
CERTIFICATE TO BE EXECUTED WHEN TAX EXEMPT SALE IS MADE TO
					 AN EXEMPT INSTITUTION OR AGENCY
The undersigned hereby certifies that the item or items
					 being purchased are to be used or consumer in connection with the operation of
					 the exempt institution for agency named in the space provided below, and that
					 the consideration for this purchase moves from the funds of the designated
					 institution or agency. In the event this claim is disallowed, the transferee
					 promises to reimburse the seller for the amount of the tax involved.
___________________________________________________
Name of exempt institution or agency
DATE _______________________________
___________________________________________________
Signature and title of person making
					 certification
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.67 - Fuel dealers

Current through Vol. 24-12, July 15, 2024
Rule 17.
(1) The
				  sale of coal, coke, wood, fuel oil, liquid petroleum gas, and other fuel that
				  is not otherwise exempt is taxable based on the sales or purchase price. The
				  sale for residential use of electricity, natural or artificial gas, or home
				  heating fuels is exempt from the sales tax at the additional rate of 2%, as
				  approved by the electors on March 15, 1994.
(2) The sale of equipment, tools, materials
				  and supplies, consumed or used in handling and preparing fuel for market or
				  delivery is taxable.
(3) The sale
				  of bottled gas cylinders by dealers and distributors is subject to tax at the
				  time of sale. A dealer or distributor that rents bottled gas cylinders to its
				  customers may elect to pay use tax on the rental receipts instead of paying
				  sales tax when the dealer or distributor purchases the cylinder for use in its
				  rental business. See R
				  205.132.
(4) The sale of fuel used in rail operations
				  is exempt from tax, except for use in vehicles licensed and titled for use on
				  public highways.
(5) The sale of
				  fuel used or consumed in the manufacturing of power, heat, light, or gas to be
				  sold at retail is not taxable.
(6)
				  The sale of fuel used for an exempt agricultural purpose or industrial
				  processing is exempt from tax.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.68 - Containers, cartons, and wrapping materials

Current through Vol. 24-12, July 15, 2024
Rule 18.
(1) As
				  used in this rule, "containers" means the articles and devices in which
				  tangible personal property is placed for shipment and delivery, such as
				  wrapping materials, bags, cans, twines, gummed tapes, barrels, boxes, tote
				  boxes, pallets, racks, bottles, drums, carboys, cartons, sacks, and materials
				  from which the containers are manufactured.
(2) Sales of containers to persons engaged in
				  rendering a service are taxable.
(3) Sales of containers that will be resold
				  with the product are eligible for a resale exemption. If a separate charge is
				  made for the sale of a container to a person, other than for resale, it is
				  taxable. Sales of containers that are not resold with the property it contains
				  are taxable.
Example 1: ABC manufactures golf balls. ABC sells its golf
					 balls for resale to retailers. When a retailer places an order, ABC packages
					 its golf balls by the dozen into boxes that are intended to be sold with the
					 golf balls. When ABC receives an order from a retailer it places multiple boxes
					 of golf balls into a larger box for shipment. The box that is sold with the
					 golf balls is eligible for the resale exemption.
However, the larger box used to ship multiple boxes of golf
					 balls is taxable because it is not resold. ABC shall pay sales tax when it
					 purchases the larger box or remit use tax on the purchase price of the
					 box.
Example 2: Same facts as Example 1 except that ABC packages
					 a gross of golf balls, a dozen boxes of a dozen golf balls, for shipment to
					 retailers with the packaging into the larger box occurring before the packages
					 of golf balls first come to rest in finished goods inventory. The larger box,
					 and associated packing materials such as popcorn, styrofoam, and peanuts, are
					 exempt as it was used in the packaging before the golf ball boxes came to rest
					 in finished goods inventory.
(4) Sales of containers to a person, such as
				  a manufacturer, wholesaler, jobber, or retailer, who uses the containers to
				  ship or deliver goods, and retains the ownership or legal right of possession
				  of the containers, are taxable.
(5)
				  Sales or purchases, for a single use only, of bracings, blocking, skidding,
				  shoring, and other materials, commonly known as dunnage are taxable when used
				  in the shipment of a product to a customer.
(6) Deposits on a returnable container for a
				  beverage, or the deposit on a carton or case which is used for returnable
				  beverage containers, are not taxable when sold in conjunction with a sale of a
				  beverage.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.70 - Consignments

Current through Vol. 24-12, July 15, 2024
Rule 20.
(1) Sales
				  of tangible personal property consigned, delivered, or entrusted to a retailer
				  for the purpose of selling at retail are taxable to the retailer on the total
				  retail sale price without deduction for any expense, such as storage, rental,
				  commission, or repairs. It is immaterial whether the goods are different from
				  those sold in the regular business of the retailer.
(2) Where a retailer selling tangible
				  personal property belonging to another has the right to withhold or claim a
				  portion of the sale price as compensation, the retailer shall include the total
				  amount received from the sale of the goods in its tax return.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.71 - Contractors

Current through Vol. 24-12, July 15, 2024
Rule 21. A contractor includes only prime, general, and
					 subcontractors directly engaged in the business of constructing, altering,
					 repairing, or improving real estate for others.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.76 - Employer sales and employer-sponsored incentive programs

Current through Vol. 24-12, July 15, 2024
Rule 26.
(1) When
				  an employer sells tangible personal property to employees, allows them to
				  purchase through the organization or to buy from others on discounts available
				  to the employer, or in another manner obtain goods through the employer, the
				  sales are taxable.
(2) An employer
				  shall report and pay tax on sales to employees under subrule (1) of this rule,
				  even if the employer is exempt from tax on the employer's regular
				  business.
(3) Tax applies on the
				  sale of tangible personal property to an employer who purchases that tangible
				  personal property for free distribution to employees, unless the tangible
				  personal property is otherwise exempt. For example, tax would not apply to the
				  sale of goggles, protective gear, and other safety equipment to a manufacturer
				  for use by employees engaged in an exempt industrial process.
(4) The sale of tangible personal property to
				  an employee by a third-party retailer through an employer-sponsored rewards,
				  performance improvement, or other incentive program is taxable. The tax on any
				  such transaction is imposed on the total value of the points, rewards, or other
				  consideration redeemed in the transaction for the tangible personal property.
				  Tax is not imposed on the redemption of any product that is not tangible
				  personal property.
Example: An employer contracts with a company to operate a
					 points-based incentive plan for employees. Under the plan, employees accumulate
					 points that may be used to redeem certain prizes from the company, including
					 tangible personal property and travel packages. Under the service agreement,
					 the company then bills the employer based upon the value of points redeemed
					 each period. Under this arrangement, tax is imposed on any redemption of
					 tangible personal property by the employee based upon the total value of the
					 points used to redeem that tangible personal property. Tax is not imposed on
					 any redemption of prizes that does not involve tangible personal property, such
					 as travel packages. The payments from the employer to the company for the
					 points redeemed each period relate to the operation of the service agreement
					 and are not taxable.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.77 - Fairs, circuses, carnivals, and other public exhibitions

Current through Vol. 24-12, July 15, 2024
Rule 27. Persons operating or sponsoring a fair, circus,
					 carnival, exposition, bazaar, or similar event are liable, as the principal,
					 for the tax upon the sale or use of tangible personal property sold, given as
					 prizes, or otherwise disposed of by a person engaged in business without a
					 sales tax license at the exhibition, unless the tax is paid by the dispenser of
					 the property.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.79 - Federal and state governments

Current through Vol. 24-12, July 15, 2024
Rule 29.
(1) Sales
				  to the United States government, its unincorporated agencies and
				  instrumentalities, any incorporated agency wholly owned by the United States or
				  by a corporation wholly owned by the United States, the American Red Cross and
				  its chapters and branches, and this state and its political subdivisions,
				  departments, and institutions are not taxable if the sales are paid for
				  directly to the seller with government funds.
(2) When the sales are made without the
				  required purchase order form being supplied in advance, the sale is taxable,
				  but the licensee may later take credit for the tax payment upon the licensee's
				  receipt of purchase order and warrant covering the sales.
(3) Sales to governmental employees for their
				  own consumption or use are taxable.
(4) Sales to and purchases by
				  non-governmental entities doing business on federal areas are taxable, if the
				  sale is not made directly to an exempt federal instrumentality.
(5) A person subject to a tax under this act
				  need not include in the amount of his or her gross proceeds used for the
				  computation of the tax any proceeds of his or her business derived from sales
				  to the United States, its unincorporated agencies and instrumentalities, any
				  incorporated agency or instrumentality of the United States wholly owned by the
				  United States or by a corporation wholly owned by the United States, the
				  American Red Cross and its chapters and branches, and this state or its
				  departments and institutions or any of its political subdivisions.
(6) Sales to and purchases by national banks
				  are taxable.
(7) Sales made by
				  political subdivisions of this state, including counties, municipalities,
				  villages, school districts, water districts, and airport districts, are
				  taxable, unless otherwise specifically exempted.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.80 - Florists and nurserymen

Current through Vol. 24-12, July 15, 2024
Rule 30.
(1)
				  Flowers, trees, plants, shrubs, seeds, grass, and other similar property are
				  tangible personal property subject to tax. Florists, nurserymen, and other
				  persons engaged in the business of selling such tangible personal property are
				  liable for the tax on their gross sales. The tax applies regardless of where or
				  how the items are grown or produced and regardless of whether sold from a
				  store, curb, market, greenhouse, farm, or other place.
(2) The following apply only to sales made
				  through telegraphic delivery association, wire service, or in similar manner:
(a) On all orders taken by a florist in this
				  state and communicated to a second florist, either located in this state or
				  another state, the florist taking the order is liable for the tax.
(b) Where florists in this state receive
				  instructions from other florists either located in this state or another state
				  for the delivery of flowers, the florist receiving the instructions is not held
				  liable for the tax with respect to any proceeds from the transaction.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.88 - Lodging provided by hotels, motels, cabins and camps

Current through Vol. 24-12, July 15, 2024
Rule 38.
(1) Use
				  tax is imposed on rental receipts from rooms or lodgings furnished by hotel
				  keepers, motel operators, and other persons furnishing accommodations that are
				  available to the public based on commercial and business enterprise,
				  irrespective of whether membership is required for use of the
				  accommodations.
(2) The following
				  rentals are not taxable:
(a) Rooms or lodging
				  rented for a continuous period of more than 1 month to the same tenant. As used
				  in this subdivision, "1 month" means 30 days or the calendar month of the
				  rental period, whichever is shorter.
(b) Rooms or lodging furnished by hospitals,
				  nursing homes, convalescent homes, and mental institutions or similar
				  institutions dedicated to the care and treatment of the sick under medical
				  supervision.
(c) Rooms or lodging
				  furnished by camps operated by a nonprofit organization and camps licensed
				  under 1973 PA 116, MCL
				  722.111 to
				  722.128.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.93 - Sales and breeding of animals

Current through Vol. 24-12, July 15, 2024
Rule 43.
(1)
				  Unless otherwise exempt, sales of horses, dogs, cats, birds, goldfish, guinea
				  pigs, reptiles, and other animals, including household pets, are taxable sales
				  of tangible personal property.
(2)
				  Persons that breed and sell animals as pets, including those who engage in the
				  activities merely as a hobby or pastime, are engaged in the business of making
				  retail sales and are required to pay sales tax on all sales of animals not for
				  resale. While a single, isolated sale of an animal would not be subject to tax,
				  a breeder who advertises or offers animals for sale at any time and in any
				  manner, including on the internet, for purposes of repeated sales is determined
				  to be regularly engaged in the business of making retail sales, and their sales
				  are not considered casual or isolated, even if they are few or infrequent as
				  described under R
				  205.13.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.94 - Labels, tags, and other property included in or affixed to containers

Current through Vol. 24-12, July 15, 2024
Rule 44.
(1) Sales
				  of labels, tags, or nameplates to persons using them in rendering services or
				  for personal or business use or which do not accompany products sold, are sales
				  for consumption and are taxable.
(2) Sales of labels, tags, or nameplates is
				  not subject to tax if the labels, tags, or nameplates will be affixed to
				  tangible personal property that will be sold at retail or affixed to the
				  containers sold with the property.
(3) Sales of labels to persons retaining
				  title to containers to which the labels are affixed are not sales for resale
				  but are sales for consumption and subject to tax.
(4) Sales of manuals, pamphlets, warranty
				  cards, and other similar tangible personal property that is included in the
				  container or packaged with a product that is sold at retail is not subject to
				  tax.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.95 - Leased departments

Current through Vol. 24-12, July 15, 2024
Rule 45.
(1) Where
				  an established business leases a portion of its shelves, counters, or floor
				  space to other persons selling tangible personal property to consumers, the
				  sales of tangible personal property by the leased departments shall be included
				  in the tax return of the lessor, who shall pay the tax thereon to the state. A
				  lessor not otherwise subject to the tax shall obtain a license in behalf of the
				  lessee.
(2) When the lessee
				  conducts the leased department in the same manner as an established like
				  business, and gives evidence to the public that he is conducting his department
				  separately from the lessor's business, or if separate business records are
				  kept, the lessee may apply for a sales tax license, if the lessee keeps
				  separate records of his business and files separate returns. The lessor shall
				  be responsible for the tax unless the lessee obtains such a license.
(3) The word "lease," as used in this rule,
				  includes permitted occupancy, regardless of consideration. The liquor
				  commission restrains persons licensed by the commission from subleasing or
				  surrendering any part of the business conducted at or on the licensed
				  premises.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.98 - Sales made in transit

Current through Vol. 24-12, July 15, 2024
Rule 48. Prepared food or other tangible personal property
					 sold or otherwise provided on any form of transportation, including, but not
					 limited to, a railcar, watercraft, or airplane while operating in this state,
					 or upon this state's waters, is subject to tax as described under
					 R 205.136.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.104 - Optometrists, ophthalmologists, opticians, and optical supply houses

Current through Vol. 24-12, July 15, 2024
Rule 54.
(1)
				  Licensed optometrists and ophthalmologists that examine, prescribe, and
				  dispense eyeglasses and contact lenses are considered, for sales tax purposes,
				  to be making retail sales. A sales tax license is required for this
				  activity.
(2) Eyeglasses dispensed
				  to a patient by an ophthalmologist, optometrist, or optician pursuant to a
				  prescription to correct that patient's vision, and repair and replacement parts
				  for the eyeglasses, are exempt. Contact lenses are taxable. If necessary to
				  complete the sale of contact lenses, examination charges or other service
				  charges are taxable, even if billed separately.
(3) Sales by opticians and optical supply
				  houses to optometrists and ophthalmologists are exempt when sold for resale,
				  provided the optometrist or ophthalmologist is properly licensed as a retailer
				  as noted in subrule (1) of this rule.
(4) Physicians acting in the capacity of
				  optometrists or ophthalmologists are subject to this rule, see
				  R 205.111.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.108 - Postage stamps

Current through Vol. 24-12, July 15, 2024
Rule 58.
(1) Sales
				  by the United States Postal Service or by an approved postal provider of
				  uncancelled United States postage valid for transportation of mail are not
				  taxable. Sales of these items made by other sellers are subject to tax. Sales
				  of cancelled domestic or foreign stamps or of uncancelled foreign postage
				  stamps not valid for transportation of mail in the United States are
				  taxable.
(2) As used in this rule,
				  "approved postal provider" means a business that has entered into a contractual
				  agreement with the United States Postal Service to provide authorized postal
				  services, including the sale of postage stamps, to the public.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.109 - Photographers and photo processors

Current through Vol. 24-12, July 15, 2024
Rule 59.
(1) If a
				  photographer's sitting fee or session fee is part of a package that includes
				  tangible personal property, such as prints, the total amount charged for the
				  package is taxable, even if the packaged parts are separately itemized on the
				  invoice. If a sitting fee or session fee is charged as a separate transaction,
				  and the customer is not required to also purchase prints or other products,
				  then the sitting fee or session fee is not taxable.
(2) The development and processing of
				  photographic images, whether using a physical or digital process, together with
				  the production of prints, film strips, slides, or other tangible personal
				  property, are subject to sales tax on the total price charged to the customer.
				  Whether equipment, materials, and supplies purchased for use in the creation
				  and development of photographic images are used in industrial processing and
				  are therefore exempt from tax, depends upon the process used to develop the
				  photographic images. Equipment, materials, and supplies purchased for use in
				  the creation, development, and sale of digital products, including digital
				  photographic images, are not used in industrial processing, and are taxable.
				  However, equipment, materials, and supplies purchased for use in the physical
				  processing of non-digital photographic images, such as the development of
				  exposed film or film negatives, may be used in industrial processing and are
				  exempt from tax, as described in section
				  4 t of the General Sales Tax Act,
				  1933 PA 167, MCL
				  205.54t and section
				  4 o of the Use Tax Act, 1937 PA 94,
				  MCL 205.94o.
(3) Coloring, tinting, retouching,
				  restoration, and similar services, if performed on photographs or images owned
				  by the customer, are nontaxable. If the services are performed as part of a
				  package that includes tangible personal property, or in connection with the
				  photographer's creation of photographic images to be sold as prints or other
				  tangible personal property, the total amount charged to the customer is
				  taxable.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.111 - Physicians, surgeons, dentists, veterinarians, osteopaths, and other health professionals

Current through Vol. 24-12, July 15, 2024
Rule 61.
(1)
				  Physicians, surgeons, dentists, veterinarians, osteopaths or other health
				  professionals not otherwise specifically provided for in these rules render
				  nontaxable services.
(2) Unless
				  otherwise exempt, sales of drugs, medications, instruments, equipment, and
				  other tangible personal property to persons for use in rendering professional
				  services or for use within their offices, laboratories, or other similar
				  quarters are taxable.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.112 - Premiums and gifts

Current through Vol. 24-12, July 15, 2024
Rule 62.
(1)
				  Unless an exemption applies, donors of tangible personal property are regarded
				  as consumers of that tangible personal property and the sale of that property
				  to them is taxable. Similarly, the sale to an employer of tangible personal
				  property for free distribution to its employees may also be taxable, under
				  R 205.76. The sale of goods to be
				  given away for advertising purposes is also taxable.
(2) If goods purchased for resale are
				  subsequently given away or used by the retailer, the retailer is liable for use
				  tax on the purchase price of the goods, unless otherwise exempt.
(3) The redemption of scrips, whether in the
				  form of punch cards, certificates, box tops, tokens, proofs of purchase,
				  points, or similar promotional consideration for premiums is a taxable sale at
				  retail and sales tax must be paid on the redemption value of the scrips. Sales
				  tax does not apply if the consideration is redeemed for cash rather than for
				  tangible personal property. Premiums acquired for resale purposes are not
				  subject to sales or use tax.
(4)
				  Purchasers of tangible personal property to be awarded as prizes, the winning
				  of which depends upon chance or skill, are regarded as consumers of that
				  property and the tax applies to sales of the property to them. Similarly,
				  purchasers of tangible personal property for use in games, promotions, and
				  similar operations, in which each customer receives some merchandise or prize
				  regardless of skill or chance, are regarded as the consumers of that property
				  and the tax applies to sales of the property to them.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.127 - Water

Current through Vol. 24-12, July 15, 2024
Rule 77.
(1) Sales
				  of water are taxable except when delivered through water mains, sold in bulk
				  tanks in quantities of not less than 500 gallons, sold as bottled water, or
				  sold for an exempt use.
(2) The
				  sale of equipment, tools, machinery, pipes, fittings and supplies to a person
				  for consumption or use in distributing and carrying water is taxable. Sales of
				  tangible personal property for installation as a component part of a water
				  pollution control facility are exempt if the facility was issued a tax
				  exemption certificate under part 37 of the natural resources and environmental
				  protection act, 1994 PA 451, MCL 324.3701 to 324.3708.
(3) As used in this rule, "bottled water"
				  means water that is placed in a safety sealed container or package for human
				  consumption, including water that is delivered to the buyer in a reusable
				  container that is not sold with the water. Bottled water is calorie free and
				  does not contain sweeteners or other additives except that it may contain 1 or
				  more of the following:
(a) Antimicrobial
				  agents.
(b) Fluoride.
(c) Carbonation.
(d) Vitamins, minerals, and
				  electrolytes.
(e) Oxygen.
(f) Preservatives.
(g) Only those flavors, extracts, or essences
				  derived from a spice or fruit.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.128 - Federal and state taxes

Current through Vol. 24-12, July 15, 2024
Rule 78.
(1)
				  Federal manufacturers' excise taxes imposed on the following products are not
				  deductible from a retailer's gross proceeds in computing sales or use taxes:
				  Trucks, buses, tractors, accessories and similar products, tires and tubes,
				  gasoline and lubricating oil, fishing equipment, and firearms.
(2) The federal retailers' excise taxes
				  imposed on the following products are deductible from a retailer's gross
				  proceeds in computing sales or use taxes: Diesel fuel, liquid petroleum gas,
				  and other special motor fuels.
(3)
				  The federal communications tax imposed on persons using communication services
				  is not part of the tax base for computing the use tax on such
				  services.
(4) Michigan taxes which
				  are deductible when included in gross are as follows:
(a) Motor fuel retailers may deduct from
				  gross proceeds on their sales tax return the amount of Michigan motor fuel tax
				  paid to the state or to the distributor.
(b) The Michigan cigarette tax may be
				  deducted only by taxpayers engaged in the business of selling cigarettes at
				  retail if the seller is not enriched by collecting the sales tax on the full
				  selling price.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.132 - Lease or rental

Current through Vol. 24-12, July 15, 2024
Rule 82.
(1) A
				  lessor is a person engaged in the business of renting or leasing tangible
				  personal property.
(2) The terms
				  "lease" and "rental" have the same meaning and may be used interchangeably. For
				  agreements entered into after September 1, 2004, a lease or rental means either
				  of the following:
(a) Any transfer of
				  possession or control of tangible personal property for a fixed or
				  indeterminate term for consideration and may include future options to purchase
				  or extend.
(b) An agreement
				  covering motor vehicles or trailers if the amount of consideration may be
				  increased or decreased by reference to the amount realized upon sale or
				  disposition of the property, as that term is defined in
				  26 USC
				  7701(h)(1).
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.136 - Food for human consumption

Current through Vol. 24-12, July 15, 2024
Rule 86.
(1)
				  Retail sales of food for human consumption normally considered as grocery items
				  for home consumption are tax exempt.
(2) Alcoholic beverages (containing
				  &frac12 of 1% or more of alcohol by volume) such as beer, wine, and liquor,
				  are subject to tax.
(3) Tobacco and
				  tobacco products are subject to tax.
(4) "Prepared food" is subject to tax. All of
				  the following apply:
(a) "Prepared food"
				  means any of the following:
(i) Food sold in a
				  heated state or that is heated by the seller.
(ii) Two or more food ingredients mixed or
				  combined by the seller for sale as a single item.
(iii) Food sold with eating utensils provided
				  by the seller.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.137 - Air and water pollution control facility

Current through Vol. 24-12, July 15, 2024
Rule 87.
(1)
				  Tangible personal property purchased for installation as a component part of a
				  water pollution control facility or an air pollution control facility for which
				  a tax exemption certificate is issued by the state tax commission is exempt
				  from sales and use tax. The exemption is effective for dates on and after the
				  date the certificate is issued by the state tax commission. If a tax exemption
				  certificate previously issued is revoked by the state tax commission, the
				  exemption may no longer be claimed beginning on the effective date of the
				  revocation.
(2) When sales or use
				  tax has been paid on tangible personal property, which later qualifies for
				  exemption as a result of obtaining a certificate of exemption from the state
				  tax commission, a refund may be requested by the purchaser upon submission of
				  both of the following documents to the department of treasury:
(a) A copy of the exemption certificate
				  issued by the tax commission indicating the approved cost of the tangible
				  personal property installed and entitled to exemption.
(b) A copy of the seller's invoice showing
				  the name and address of the seller, identification of purchaser, identification
				  of the items purchased, the date of purchase, and amount of tax paid to
				  seller.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.140 - Nonprofit entities

Current through Vol. 24-12, July 15, 2024
Rule 90.
(1) Sales
				  of tangible personal property and services to properly qualified nonprofit
				  entities for their own use and consumption, but not for resale, are
				  exempt.
(2) The claimant shall meet
				  the following requirements for exemption:
(a)
				  Qualify as a school, hospital, home for the care and maintenance of children or
				  aged persons, and other health, welfare, educational, charitable, or benevolent
				  institutions and agencies.
(b) Be
				  operated by an entity of government, a regularly organized church, religious or
				  fraternal organization, a veterans organization, or a corporation incorporated
				  under laws of the state.
(c) The
				  income or benefit from the operation shall not inure, in whole or in part, to
				  any individuals or private shareholders, directly or indirectly.
(d) The activities of the entity or agency
				  shall be carried on exclusively for the benefit of the public at large and not
				  limited to the advantage, interests, and benefits of its members or any
				  restricted group.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.141 - Marihuana

Current through Vol. 24-12, July 15, 2024
Rule 91.
(1) All
				  sales of marihuana, whether legal or illegal, are subject to the general sales
				  tax act, 1933 PA 167, MCL 205.51 to 205.78, based on the "sales price" of the
				  property as defined by section 1(1)(d) of the general sales tax act, 1933 PA
				  167, MCL 205.51(1)(d). The taxable "sales price" of marihuana includes the 10%
				  excise tax levied under section 13(1) of the Michigan regulation and taxation
				  of marihuana act, 2018 IL 1, MCL 333.27963(1).
Example: ABC Inc. is licensed to sell adult-use marihuana
					 as a marihuana retailer under the Michigan regulation and taxation of marihuana
					 act, 2018 IL 1, MCL 333.27951 to 333.27967. ABC sells marihuana to customer for
					 $100.00. ABC is liable for $10.00 of marihuana excise tax. ABC is also liable
					 for sales tax on this transaction. The amount of sales tax due is 6% of $110.00
					 or $6.60.
(2) The use,
				  storage, or consumption of marihuana in this state is subject to the use tax
				  act, 1937 PA 94, MCL 205.91 to 205.111.
(3) For purposes of the general sales tax act
				  and the use tax act, marihuana, in any form, does not constitute the exempt
				  sale, use, storage, or consumption of food or prescription drugs under MCL
				  205.54g or 205.94d.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › General Sales and Use Tax Rules › SPECIFIC SALES AND USE TAX RULES › Section R. 205.142 - Exemption for Diesel Fuel Used in Certain Vehicles Operated for Hire

Current through Vol. 24-12, July 15, 2024
Rule 92. Sales or use tax does not apply on retail sales or
					 purchases of diesel fuel for use in passenger vehicles of a capacity of 10 or
					 more operated for hire under a certificate of authority issued by the state
					 transportation department. As used in this rule, "diesel fuel" means that term
					 as defined in section
					 2 of the motor fuel tax act, 2000
					 PA 403, MCL
					 207.1002.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Taxation of Adult-Use (Recreational) Marihuana Rules › TAXATION OF ADULT-USE (RECREATIONAL) MARIHUANA RULES › Section R. 205.150 - "Sales price" definition

Current through Vol. 24-12, July 15, 2024
Rule 150. As used in these rules, "sales price" means the
					 total amount of consideration, including cash, credit, property, services, or
					 any other valuable consideration given in exchange for marihuana.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Taxation of Adult-Use (Recreational) Marihuana Rules › TAXATION OF ADULT-USE (RECREATIONAL) MARIHUANA RULES › Section R. 205.151 - Bundled transactions

Current through Vol. 24-12, July 15, 2024
Rule 151.
(1) If
				  property or services other than marihuana are bundled and sold in a single
				  transaction in violation of section 13(2) of the Michigan regulation and
				  taxation of marihuana act, 2018 IL 1, MCL 333.27963(2), the entire sales price
				  of the transaction, including the property or services that do not constitute
				  marihuana, is subject to the tax imposed by section 13(1) of the Michigan
				  regulation and taxation of marihuana act, 2018 IL 1, MCL 333.27963(1).
(2) As used in this rule, "bundled
				  transaction" means the retail sale of marihuana together with 1 or more other
				  products or services that includes both of the following:
(a) The products or services are distinct and
				  identifiable.
(b) The marihuana
				  and the products or services, or both, are sold for 1 non-itemized
				  price.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Cigarette Tax › Section R. 205.402 - Licensing; applications; fees

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) To
				obtain a license, a manufacturer, wholesaler, secondary wholesaler, vending
				machine operator, unclassified acquirer, transportation company, or transporter
				shall file with the department a verified application upon a form prescribed
				and furnished by the department. These applications may be obtained at the
				Michigan Department of Treasury, Treasury Building, Lansing, Michigan
				48922.
(2) The application of a
				manufacturer, wholesaler, secondary wholesaler, or unclassified acquirer shall
				contain all of the following information:
(a)
				The name of the owner.
(b) The name
				under which the applicant intends to transact business.
(c) The names and addresses of the persons
				who constitute the firm or partnership.
(d) If a corporation, the corporate name, the
				state where incorporated, the date incorporated, and the name of its officers
				and directors.
(e) If a foreign
				corporation, the name and address of its resident agent.
(f) The location or locations of the place or
				places of business.
(g) The date
				such business was established.
(h)
				The percentage of cigarettes purchased to be sold for resale.
(i) Any other information the department may
				require.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Cigarette Tax › Section R. 205.403 - Surety bond; financial statement

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) If an
				applicant for a license cannot satisfy the department as to the applicant's
				financial responsibility, the department may require the applicant to furnish a
				surety bond, payable to the "State of Michigan," in such amount as the
				department may determine, conditioned upon payment of the tax as specified by
				section 7 of the act. The department may also require any licensee to file a
				financial statement with the department showing all assets and liabilities,
				together with any other financial information the department may
				prescribe.
(2) If there is a change
				of corporate ownership or control, a new financial statement may be
				required.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Cigarette Tax › Section R. 205.405 - License; suspension; revocation; refusal to issue; hearing; appeal

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) The
				department may suspend, revoke, or refuse to issue any license required under
				the act for failure of the licensee to comply with any provisions of this act,
				or for any other good cause, after notice and departmental hearing. Good cause
				may be, but is not limited to, any of the following items:
(a) Failure to file return.
(b) Failure to pay tax.
(c) Failure to keep records as described in
				R
				205.406.
(d) Failure to issue proper invoices as in
				R
				205.406.
(e) Failure to identify vending machines with
				a marker.
(f) Failure to have
				prescribed stamp on half-cases of cigarettes as required in
				R
				205.408.
(g) Failure to file bond if required under
				R
				205.403.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Cigarette Tax › Section R. 205.407 - Inspection of books and records; entry upon premises to inspect equipment, inventories, and storage areas

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) The
				department, or its duly authorized agent, may examine the books, records, and
				papers of any licensee, retailer, common carrier, or warehouseman pertaining to
				the records of cigarettes received, purchased, used, shipped, or delivered, as
				the case may be, to verify the truth and accuracy of any statement, report, or
				return.
(2) The department, or its
				duly authorized agent, may enter in and upon the premises of any licensee or
				retailer, as defined in these rules, at all reasonable times for the purpose of
				inspecting stamping equipment, cigarette inventories, and storage areas,
				together with all pertinent records and papers for the reasonable
				administration of the act.