Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.  The filing is due by January 31st of the year immediately after the end of the calendar year.  This requirement aims to assess the financial impact on key funds like the School Aid Fund and General Fund.

Public Acts 29 and 30 of 2020, which went into effect February 13, 2020, mandate submitting yearly reports detailing equipment sales or purchase prices by January 31st of the following year.

Filing Form 5726 fulfills reporting obligations but is not a way to claim exemptions. If no activity occurred, filing is not necessary.  The form and guidelines can be accessed on the Michigan Treasury’s website.  For specifics on eligible exemptions, refer to the Treasury’s Notice Regarding Data Center Exemption. Queries about filing can be directed to Tax Technical Services at 517-636-4357.  In summary, compliance with Form 5726 helps evaluate the impact of tax exemptions on state revenue and maintains transparency in fund allocation. (Michigan Department of Treasury Update, Michigan Department of Treasury Release November 2023)

Posted on December 14, 2023