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Michigan Sales Tax

On this page you will find handy sales and use tax information about Michigan.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Michigan that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000% The state has reduced rates for sales of certain types of items.
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

10/1/2015
AFFILIATE NEXUS

10/1/2015
ECONOMIC NEXUS

10/1/2018 – see state notice
MARKETPLACE NEXUS

1/1/2020
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

May 15, 2011 - June 30, 2011

Go to Michigan Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes due prior to January 1, 2010.

TAX TYPES AND CONDITIONS

All state taxes administered through the Revenue Act.
AMNESTY BENEFITS

Civil and criminal penalties waived; any liability found due after amnesty subject to additional 20% penalty.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Michigan Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: Agriculture, Industrial Processing, Rolling Stock, Qualified Data Centers

 

Entity types of exemptions: 501(c)(3) and 501(c)(4) organizations; churches; hospitals; schools; government

 

Michigan Exemption Certificate Forms
State Links
State Tax Web Page

Michigan Department of Treasury
Rate Look-Up Page

Michigan Sales Tax Rate Look-Up
Registration Link

Register for Michigan Sales Tax
History & Fun Facts
HISTORY

  • The Michigan General Sales Tax Act took effect June 28, 1933. Sales for resale, government purchases, and isolated sales were exemptions originally included in the Act. Michigan use tax was enacted four years later, effective October 29, 1937.
  • A Michigan sales tax increase from 3 to 4 percent was approved by voters in 1960 effective in 1961. In 1994, voters approved a constitutional amendment to increase the sales and use tax rate as part of a school finance reform package. An additional 2 percent was added for a total state-wide rate of 6 percent, where the rate stands today.
FUN FACTS
  • The Michigan Department of Treasury has indicated that it utilizes a three-factor test to make a determination of whether property qualifies as tangible personal property or real property for purposes of sales and use tax.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Midwest State Tax Updates You May Have Missed

This blog post will explore three recent Midwestern state tax updates that could have a big impact – positive or negative – on your business.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Michigan Creates Tax Dispute Resolution Program

Michigan enacted legislation to create a tax dispute resolution program, effective December 28, 2017.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Services Provided by Medicaid Managed Care Organizations Not Subject to Use Tax in Michigan After December 31, 2016

Michigan enacted legislation stating that medical services provided by Medicaid managed care organizations are no longer subject to use tax after December 31, 2016.

Michigan Enacts Sales Tax Exemption for Vehicle Core Charge

Effective January 1, 2017, credits for the core charge attributable to a recycling fee, deposit, or disposal fee for a motor vehicle or recreational vehicle part or battery are excluded from Michigan’s definition of “sales price.”

Michigan Announces Non-Acquiescence to Industrial Processing Decision

The Michigan Department of Treasury will not follow the decision of Central Michigan Cementing Services LLC v. Depart of Treasury, an industrial processing case, in similar circumstances for other taxpayers.

Digital Goods Not Subject to Sales Tax in Michigan

The Michigan Department of Treasury clarified that sales of digital goods, including e-books, podcasts, electronic music, and telephone ringtones, are not subject to Michigan sales tax.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Michigan Sales Tax Licenses Will Remain Valid Through December 31, 2016

The Michigan Department of Treasury has announced that sales tax licenses will remain valid through December 31, 2016.

Michigan Clarifies Policy on Taxability of Cloud Computing

Michigan clarified its policy on the taxability of cloud computing. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Michigan Announces New Online Filing System

Michigan announced that beginning January 2015, current-year sales, use and withholding tax returns may be filed using a new online system, Michigan Treasury Online.