Michigan Compiled Laws Act 167 Of 1933 General Sales Tax Act (205.51 - 205.78)

AN ACT to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act.

History: 1933, Act 167, Imd. Eff. June 28, 1933 ;-- Am. 1949, Act 272, Eff. July 1, 1949

Section 205.51 Definitions; Unlicensed Person As Agent Of Dealer, Distributor, Supervisor, Or Employer; Regarding Dealer, Distributor, Supervisor, Or Employer As Making Sales At Retail Prices.
(1) As used in this act: (a) "Person" means an individual, firm, partnership, joint venture, association, social club, fraternal organization, municipal or private corporation...
Section 205.51a Additional Definitions.
As used in this act: (a) "Alcoholic beverage" means a beverage suitable for human consumption that contains 1/2 of 1% or more of alcohol...
Section 205.52 Sales Tax; Rate; Additional Applicability; Separate Books Required; Penalty; Tax As Personal Obligation Of Taxpayer; Exemption.
(1) Except as provided in section 2a, there is levied upon and there shall be collected from all persons engaged in the business of...
Section 205.52a Reduction Of Tax On Vehicle For Which Special Registration Secured; Limitation; Certification.
(1) For a sale at retail to a person of a vehicle for which a special registration is secured pursuant to section 226(9) of...
Section 205.52b Retail Sale Of Tangible Personal Property To Purchaser; Presumptions; Agreement To Purchase Advertisements; Effectiveness Of Section; Definitions.
(1) A seller who sells tangible personal property to a purchaser in this state is presumed to be engaged in the business of making...
Section 205.53 License Required To Engage In Business For Which Privilege Tax Imposed; Bond Or Deposit; Renewal; Exemptions; Suspension And Restoration Of License; Violation As Misdemeanor; Penalty; Registration Under Streamlined Sales And Use Tax Agreement; Person Subject To Tobacco Products Tax Act; Affirmative Defense.
(1) Subject to subsections (4) and (5), if a person engages or continues in a business for which a privilege tax is imposed by...
Section 205.54 Deductions; Filing Estimated Returns And Annual Periodic Reconciliations; Registration Under Streamlined Sales And Use Tax Agreement.
(1) In computing the amount of tax levied under this act for any month, a taxpayer not subject to section 6(2) may deduct the...
Section 205.54a Sales Exempt From Tax; Limitation.
(1) Subject to subsection (2), the following are exempt from the tax under this act: (a) A sale of tangible personal property not for...
Section 205.54b Deductible Sales Of Gasoline; Statement Of Transferee.
Any taxpayer, who does not include in the amount of his gross proceeds used for the computation of the tax on sales of gasoline...
Section 205.54c Repealed. 2004, Act 173, Eff. Sept. 1, 2004.
Compiler's Notes: The repealed section pertained to exemptions of property affixed to real estate under certain contracts.
Section 205.54d Additional Sales Excluded From Tax.
The following are exempt from the tax under this act: (a) The sale of tangible personal property to a person who is a lessor...
Section 205.54e Sales Of Vehicles To Members Of Armed Forces.
A sale of a vehicle from a Michigan retailer for titling and registration in his or her home state of residency or domicile to...
Section 205.54f Commissions Paid To Entities Exempt Under Mcl 205.54a; Exemptions.
Commissions paid to an entity exempt under the provisions of section 4a from sales of tangible personal property dispensed through a nonelectrically operated vending...
Section 205.54g Sales Exempt From Tax; Tax On Sale Of Food Or Drink From Vending Machine; Definitions.
(1) The following are exempt from the tax under this act: (a) Sales of drugs for human use that can only be legally dispensed...
Section 205.54h Exemptions.
Sales to the United States, its unincorporated agencies and instrumentalities, any incorporated agency or instrumentality of the United States wholly owned by the United...
Section 205.54i Bad Debt; Definitions; Deduction; Amount; Payment Of Bad Debt; Liability; Written Election Designating Party Claiming Deduction; Evidence Required To Support Claim For Deduction; Change In Tax Rate; Review; Taxpayer Under Streamlined Sales And Use Tax Agreement.
(1) As used in this section: (a) "Bad debt" means any portion of a debt that is related to a sale at retail taxable...
Section 205.54j Sale Of Tangible Personal Property For Use In Qualified Business Activity Of Purchaser; Definition.
(1) A sale of tangible personal property used in a qualified business activity of the purchaser is exempt from the tax under this act....
Section 205.54k Drop Shipment; Definition.
(1) The sale of tangible personal property that is part of a drop shipment is exempt from the tax under this act if the...
Section 205.54l Repealed. 2004, Act 173, Eff. Sept. 1, 2004.
Compiler's Notes: The repealed section pertained to sale of tangible personal property to business engaged in high technology activity.
Section 205.54m Sale Of Rail Freight Or Passenger Cars, Locomotives Or Other Rolling Stock, Roadway Machines And Certain Work Equipment; Exemption.
A sale of rail freight or passenger cars, locomotives or other rolling stock, roadway machines and work equipment primarily of a flanged wheel nature,...
Section 205.54n Sale Of Electricity, Natural Or Artificial Gas, Home Heating Fuels, Or Steam; Exemption From Sales Tax At Additional Rate; Application Of Additional Rate.
The sale for residential use of electricity, natural or artificial gas, or home heating fuels is exempt from the sales tax at the additional...
Section 205.54o School, Church, Hospital, Parent Cooperative Preschool, Or Nonprofit Organization; Sales Of Tangible Personal Property For Fund-raising Purposes; Exemption; “school” Defined.
(1) The sale of tangible personal property for fund-raising purposes by a school, church, hospital, parent cooperative preschool, or nonprofit organization that has a...
Section 205.54p Property Offered To Or Made Structural Part Of Sanctuary; Exemption; “regularly Organized Church Or House Of Religious Worship” And “sanctuary” Defined.
(1) A sale of tangible personal property purchased by a person engaged in the business of constructing, altering, repairing, or improving real estate for...
Section 205.54q Sales Of Tangible Personal Property Not For Resale; Exemption; Applicability; Duties Of Transferee; Evidence Of Exemption; Limitation.
(1) A sale of tangible personal property not for resale to the following, subject to subsection (5), is exempt from the tax under this...
Section 205.54r Qualified Truck, Trailer, Or Rolling Stock; Exemption; Definitions.
(1) All of the following are exempt from the tax under this act: (a) The product of the out-of-state usage percentage and the gross...
Section 205.54s Sale Of Investment Coins And Bullion; Exemptions; Definitions.
(1) A sale of investment coins and bullion is exempt from the tax under this act. (2) As used in this section: (a) “Bullion”...
Section 205.54t Exemptions; Limitation; Industrial Processing; Definitions.
(1) The sale of tangible personal property to the following after March 30, 1999, subject to subsection (2), is exempt from the tax under...
Section 205.54u Extractive Operation; Exemptions; Definition.
(1) A sale of tangible personal property to an extractive operator for use or consumption in extractive operations is exempt from the tax under...
Section 205.54v Central Office Equipment Or Wireless Equipment; Presumption.
(1) The tax levied under this act does not apply to the purchase of machinery and equipment for use or consumption in the rendition...
Section 205.54w Nonprofit Hospital Or Nonprofit Hospital Or Housing; Exemption In Business Of Constructing, Altering, Repairing, Or Improving Property; Exemption; Definitions.
(1) For taxes levied after June 30, 1999, a sale of tangible personal property to a person directly engaged in the business of constructing,...
Section 205.54x Sales To Domestic Air Carrier; Tax Exemption; Definitions.
(1) A sale to a domestic air carrier of 1 or more of the following is exempt from the tax under this act: (a)...
Section 205.54y Industrial Processing; Exemption; Limitation.
(1) Subject to subsection (2), a person subject to the tax under this act may exclude from the gross proceeds used for the computation...
Section 205.54z Construction, Alteration, Repair, Or Improvement To Nonprofit Hospital Before July 1, 1999.
(1) For taxes levied after December 31, 1990 and before July 1, 1999, the tax levied under this act does not apply to a...
Section 205.54aa Tax Exemption; Resident Tribal Member.
(1) The tax under this act does not apply to the sale of a motor vehicle, recreational watercraft, snowmobile, or all terrain vehicle, not...
Section 205.54bb Sale Of Eligible Automobile To Qualified Recipient; Exemption; Definitions.
(1) Beginning January 1, 2005, the sale of an eligible automobile to a qualified recipient by a qualified organization that is subject to the...
Section 205.54cc Repealed. 2008, Act 78, Eff. Dec. 31, 2009.
Compiler's Notes: The repealed section pertained to tax credit relating to motion picture production company.
Section 205.54dd Sale Of Tangible Personal Property For Use As Or At Mineral-producing Property; Exemption; Limitation; "Mineral-producing Property" And "Taxpayer" Defined.
(1) Subject to subsection (2), a person subject to the tax under this act may exclude from the gross proceeds used for the computation...
Section 205.55 Additional Tax.
Additional tax. The tax imposed by this act shall be in addition to all other license fees and taxes levied by law as a...
Section 205.55a Repealed. 2004, Act 173, Eff. Sept. 1, 2004.
Compiler's Notes: The repealed section pertained to labor or services charges.
Section 205.55b Repealed. 2006, Act 590, Eff. Jan. 1, 2011.
Compiler's Notes: The repealed section pertained to tax exemption at qualified athletic event.
Section 205.56 Sales And Gross Proceeds Tax Returns; Monthly Filing; Form; Contents; Transmitting Return With Remittance For Amount Of Tax; Electronic Funds Transfer; Accrual Of Tax To State; Filing Returns And Payment Of Tax For Other Than Monthly Periods; Taxpayer As Materialperson; "Credit Sale" And "Materialperson" Defined; Due Date.
(1) Each taxpayer, unless otherwise provided by law or as required pursuant to subsection (2), (4), or (5), on or before the twentieth day...
Section 205.56a Prepayment Of Tax By Purchaser Or Receiver Of Fuel; Rate Of Prepayment; Determination; Claiming Estimated Prepayment Credits; Bad Debt Deduction; Actual Shrinkage; Accounting For And Remitting Prepayments; Schedule; Penalties; Deduction Prohibited; Liability; Date Of Prepayment; Definitions.
(1) Through March 31, 2013, at the time of purchase or shipment from a refiner, pipeline terminal operator, or marine terminal operator, a purchaser...
Section 205.56b Returned Goods Or Motor Vehicle; Tax Credit.
A taxpayer may claim a credit or refund for returned goods or a refund less an allowance for use made for a motor vehicle...
Section 205.57-205.57b Repealed. 2004, Act 173, Eff. Sept. 1, 2004.
Compiler's Notes: The repealed sections pertained to sale of motor vehicle to dealer or private individual.
Section 205.58 Consolidated Returns.
Any person engaging in 2 or more places in the same business or businesses taxable under this act, shall file a consolidated return covering...
Section 205.59 Administration Of Tax; Conflicting Provisions; Rules.
(1) The tax imposed by this act shall be administered by the department pursuant to 1941 PA 122, MCL 205.1 to 205.31, the streamlined...
Section 205.60 Refund By Taxpayer For Returned Property; Written Notice; Refund Under Mcl 445.360a.
(1) If a taxpayer refunds or provides a credit for all or a portion of the amount of the purchase price of returned tangible...
Section 205.61 Motor Vehicle Used As Partial Payment; Value.
In a taxable sale at retail of a motor vehicle where another motor vehicle is used as partial payment of the purchase price, the...
Section 205.62 Information To Be Obtained From Purchaser; Format; Signature; Record Of Exempt Transactions; Liability; Proof That Transaction Not Subject To Tax Or Obtaining Exemption Form From Purchaser; Date; Additional Time For Compliance; Blanket Exemption Form; "Certified Service Provider" Defined.
(1) If an exemption from the tax under this act is claimed, the seller shall obtain identifying information of the purchaser and the reason...
Section 205.63, 205.64 Repealed. 1980, Act 164, Eff. Sept. 17, 1980.
Compiler's Notes: The repealed sections pertained to tax lien and jeopardy assessments.
Section 205.65 Certificate Of Dissolution Or Withdrawal.
A domestic corporation, a foreign corporation, or other business entity authorized to transact business in this state that submits a certificate of dissolution or...
Section 205.66 Injunction For Failure To Pay Tax Or Obtain License.
Any person against whom a tax shall be assessed as herein provided may be restrained and enjoined by proper proceedings instituted in the name...
Section 205.66a Duty Of Assessing Officers.
It shall be the duty of each assessing officer of each city, village or township in preparing the annual property tax roll of personal...
Section 205.67 Repealed. 2008, Act 438, Imd. Eff. Jan. 9, 2009.
Compiler's Notes: The repealed section pertained to multiple points of use exemption forms.
Section 205.68 Annual Inventory And Purchase Records; Retention; Tax Liability; Failure To File Return Or Maintain Records; Tax Assessment; Basis; Burden Of Proof; Indirect Audit; Exemption Claim; Blanket Exemption Claim; "Indirect Audit Procedure" And "Sufficient Records" Defined.
(1) A person liable for any tax imposed under this act shall keep in a paper, electronic, or digital format an accurate and complete...
Section 205.69 Sourcing Sale At Retail Or Lease Or Rental Property.
(1) For sourcing a sale at retail for taxation under this act, the following apply: (a) If a product is received by the purchaser...
Section 205.70 Repealed. 2008, Act 438, Imd. Eff. Jan. 9, 2009.
Compiler's Notes: The repealed section pertained to maintenance of records.
Section 205.71 Purchaser Of Direct Mail; Exemption Form Or Delivery Information.
(1) A purchaser of direct mail other than a holder of a direct pay permit under section 8 of the use tax act, 1937...
Section 205.72 Repealed. 1980, Act 164, Eff. Sept. 17, 1980.
Compiler's Notes: The repealed section pertained to hearing and appeal of tax assessment.
Section 205.73 Advertisement; Amounts Added To Sales Prices For Reimbursement Purposes; Brackets; Tax Imposed Under Tobacco Products Tax Act.
(1) A person engaged in the business of selling tangible personal property at retail shall not advertise or hold out to the public in...
Section 205.74 Repealed. 1980, Act 164, Eff. Sept. 17, 1980.
Compiler's Notes: The repealed section pertained to penalties for offenses.
Section 205.75 Disposition Of Money Received And Collected.
(1) All money received and collected under this act shall be deposited by the department in the state treasury to the credit of the...
Section 205.76 Repealed. 1949, Act 272, Eff. July 1, 1949.
Compiler's Notes: The repealed section pertained to appropriation from general fund for administration of sales tax act and provided for its repayment.
Section 205.78 Short Title; General Sales Tax Act.
This act may be cited as the “General Sales Tax Act.” History: 1933, Act 167, Imd. Eff. June 28, 1933 ;-- CL 1948, 205.78

Last modified: October 10, 2016