Michigan Sales & Use Tax Information

Occasional/Bulk Sales Exemption
Yes, within specific criteria.Taxation of Services
Specifically enumerated services are taxable: lodging, telecommunications services, and the laundering or cleaning of textiles under a sale, rental, or service agreement with a term of at least five days.Taxation of Utilities
Electricity, steam, and natural or artificial gas are subject to sales and use tax. Residential electricity and natural and artifical gas are subject to a lower rate. An exemption exists for utilities consumed in industrial processing.Taxation of Software
Custom software and separately stated charges for canned software modification are not taxable.Manufacturing Exemptions
Yes, refer to Sec. 205.54t, M.C.L. and Sec. 205.94o, M.C.L.Research and Development Exemptions
YesTaxation of Contractors
Contractors are considered consumers of items used in providing services.Multi-jurisdictional Certificate
AcceptedTaxation of Operating Leases
Lessor may either pay sales or use tax at the time of purchase or report and pay use tax on the rental receipts.Taxation of Pollution Control Equipment
Exempt, if purchaser has been issued an exemption certificate from the State Tax Commission.Department of Revenue Website
www.michigan.gov/treasuryDepartment of Revenue Contact

Michigan Department of Treasury
Lansing, MI 48922