Use Tax Act

Michigan · 205 · §§ 205.100 to 205.99a · 63 sections

Overview

The act imposes a tax on the storage, use, or consumption of tangible personal property and certain enumerated services within the state, complementing the sales tax by reaching transactions that would otherwise escape it. It sets the rate and the price base to which it applies, defines key terms, establishes sourcing rules that determine where a transaction occurs — with specialized treatment for telecommunications, mobile wireless service, and direct mail — and obligates sellers to register, collect the tax from purchasers, and remit it, with purchasers who claim an exemption required to document the claim. It also creates a substantial set of exemptions covering particular property, industries, and transfers, along with recordkeeping and audit authority, refund and credit procedures, penalties for noncompliance by sellers and consumers, and rules governing how the collected revenue is deposited and distributed.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.

In the courts

Sections of this act have been cited in 259 court decisions.

Most-cited authority: 152 N.J. Super. 442 - NJ Bell Tel. Co. v. Director, Div. of Taxation

Sections covered

Mich. Comp. Laws § 205.100Administration of tax; conflicting provisions; rules; filing claims for refund; payment of refunds; payment of refund filed for interstate access telephone services; tax imposed under tobacco products tax act5 cites
Mich. Comp. Laws § 205.100aReceipt and collection of local community stabilization share
Mich. Comp. Laws § 205.101Refund or credit for returned tangible personal property or service; written notice
Mich. Comp. Laws § 205.101aSelling or quitting business; final return; withholding of purchase money to cover taxes, interest, and penalties; liability for failure to withhold purchase money; purchaser liability for taxes, interest, and penalties of former owner1 cite
Mich. Comp. Laws § 205.103aSales of advertising and promotional direct mail; sales of other direct mail; direct payment authorization or exemption form provided by purchaser; limitation; definitions
Mich. Comp. Laws § 205.104aInventory and records; maintenance; preservation; tax liability; failure to file return or preserve records; tax assessment; basis; indirect audit; information exception; blanket exemption; "indirect audit procedure" and "sufficient records" defined1 cite
Mich. Comp. Laws § 205.104bExemption claimed by purchaser; duties of seller; process to claim exemption after purchase
Mich. Comp. Laws § 205.105Failing to register; penalty2 cites
Mich. Comp. Laws § 205.106Seller's failure to comply with act; penalty3 cites
Mich. Comp. Laws § 205.107Computation of tax amount; rounding up to whole cent
Mich. Comp. Laws § 205.108Consumer's failure to comply with act; making false statement; penalty1 cite
Mich. Comp. Laws § 205.109Collection or payment of tax; benefit to state, authority, and metropolitan areas
Mich. Comp. Laws § 205.110Sourcing requirements1 cite
Mich. Comp. Laws § 205.111Deposit and disbursement of money; definitions2 cites
Mich. Comp. Laws § 205.91Use tax act; short title57 cites
Mich. Comp. Laws § 205.92Definitions; applicability to delivery and installation charges32 cites
Mich. Comp. Laws § 205.92bAdditional definitions1 cite
Mich. Comp. Laws § 205.92cDefinitions
Mich. Comp. Laws § 205.93Tax rate; applicability to tangible personal property or services; conversion to taxable use; penalties and interest; presumption; using, storing, or consuming vehicle, ORV, manufactured housing, aircraft, snowmobile, or watercraft; collection; price tax base; exemptions; services, information, or records of other department or agency; state share tax and local community stabilization share; total combined rate levied by state and authority; limitation55 cites
Mich. Comp. Laws § 205.93aTax for use or consumption; services; charges for intrastate telecommunications services or telecommunications services between state and another state; bundled transaction; definitions9 cites
Mich. Comp. Laws § 205.93bTax for use or consumption; mobile wireless services; customer's place of primary use; record; reliance upon exempt status for mobile wireless services; repeal of section; condition; air-ground radiotelephone service; bundled transaction; definitions
Mich. Comp. Laws § 205.93cSale of telecommunications services; definitions1 cite
Mich. Comp. Laws § 205.93ePersons providing services subject to tax; collection; refund; liability for failure to collect tax; remittance; certain collections or penalties by department of treasury prohibited
Mich. Comp. Laws § 205.93fUse or consumption of medical services provided under social welfare act; tax; "medical services" defined
Mich. Comp. Laws § 205.94Use tax; exemptions; limitation46 cites
Mich. Comp. Laws § 205.94aAdditional exemptions
Mich. Comp. Laws § 205.94aaStorage, use, or consumption of tangible personal property for use as or at mineral-producing property; exemption; "mineral-producing property" and "taxpayer" defined
Mich. Comp. Laws § 205.94bbApplicability of tax to certain transfers
Mich. Comp. Laws § 205.94ccData center equipment; exemption from tax; conditions; report; definitions
Mich. Comp. Laws § 205.94dExemptions; food or drink from vending machines; definitions3 cites
Mich. Comp. Laws § 205.94ddImprovements to real property included within transformational brownfield plan; applicability of tax levy applied to tangible personal property; "eligible property" and "transformational brownfield plan" defined
Mich. Comp. Laws § 205.94eeStorage, use, or consumption of certain tangible personal property acquired by a contractor; exemption from tax
Mich. Comp. Laws § 205.94fComputing monthly tax payments; deductions by seller collecting tax from purchaser; disallowance of deduction; deduction for extended payment period; filing estimated returns and annual periodic reconciliations; registration under streamlined sales and use tax agreement
Mich. Comp. Laws § 205.94ffSales of certain prosthetic devices; exemption; definitions
Mich. Comp. Laws § 205.94gExemption of property purchased as part of purchase or transfer of business; exceptions; definition
Mich. Comp. Laws § 205.94ggStorage, use, or consumption of eligible fuel; exemption; definitions
Mich. Comp. Laws § 205.94hTax inapplicable to property for use in qualified business activity
Mich. Comp. Laws § 205.94iExemption for drop shipments; definition
Mich. Comp. Laws § 205.94jExemption of motor vehicle acquired by towing company from police agency; definitions
Mich. Comp. Laws § 205.94kTax inapplicable to parts and materials affixed to certain aircraft, sale of aircraft, rolling stock, and qualified truck or trailer; definitions2 cites
Mich. Comp. Laws § 205.94lStorage, use, or consumption of rail freight or passenger cars, locomotives or other rolling stock, roadway machines and certain work equipment; applicability of tax; exception
Mich. Comp. Laws § 205.94llStorage, use, or consumption of firearm safety devices; exemption; definitions
Mich. Comp. Laws § 205.94mPersonal property affixed to or made structural part of sanctuary; applicability of tax; “regularly organized church or house of religious worship” or “sanctuary” defined
Mich. Comp. Laws § 205.94nElectricity, natural gas, and home heating fuels for residential use; exemption from use tax at additional rate
Mich. Comp. Laws § 205.94oExemptions; limitation; industrial processing; definitions7 cites
Mich. Comp. Laws § 205.94pExtractive operations; exemption; limitation; eligible property; definitions
Mich. Comp. Laws § 205.94qCentral office equipment or wireless equipment; presumption1 cite
Mich. Comp. Laws § 205.94sNonprofit hospital or nonprofit housing; sale of personal property to person in business of constructing, altering, repairing, or improving real estate; tax exemption; definitions
Mich. Comp. Laws § 205.94uStorage, use, or consumption of investment coins and bullion; applicability of tax; definitions
Mich. Comp. Laws § 205.94wApplicability of tax; exceptions; definitions
Mich. Comp. Laws § 205.94xTax exemption; resident tribal member
Mich. Comp. Laws § 205.94yStorage, use, or consumption of automobile provided by family independence agency or qualified organization; applicability of tax
Mich. Comp. Laws § 205.94zCertain property affixed to or made structural part of qualified convention facility; "qualified convention facility" defined
Mich. Comp. Laws § 205.95Registration requirements; seller to collect tax from consumer; foreign corporations; dissolution or withdrawal of corporation; election of lessor on payment of taxes; registration under streamlined sales and use tax agreement8 cites
Mich. Comp. Laws § 205.95aSale of tangible personal property; nexus with state; presumptions; purchase of advertisements; agreement; effectiveness of section; definitions
Mich. Comp. Laws § 205.95bSeller of tangible personal property or services; nexus; conditions; application to transactions after October 1, 2018; inclusion of sales of marketplace facilitator and marketplace seller; exception; definitions
Mich. Comp. Laws § 205.95cMarketplace facilitators; nexus; report; class action prohibited; audit; liability; conditions; definitions
Mich. Comp. Laws § 205.96Use tax returns; filing; form; contents; payment of tax; remittance for certain total tax liability after subtracting tax payments; electronic funds transfer; filing other than monthly returns; accrual to state; due date7 cites
Mich. Comp. Laws § 205.96cAviation fuel; informational report; "aviation fuel" defined
Mich. Comp. Laws § 205.97Liability for tax11 cites
Mich. Comp. Laws § 205.98Direct payment authorization
Mich. Comp. Laws § 205.99Personal liability of seller or certified service provider for failure to collect tax; definition3 cites
Mich. Comp. Laws § 205.99aBad debt deduction

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