Michigan Compiled Laws Act 94 Of 1937 Use Tax Act (205.91 - 205.111)

• Section 205.91 Use Tax Act; Short Title.
  This act may be cited as the “Use Tax Act”. History: 1937, Act 94, Eff. Oct. 29, 1937 ;-- CL 1948, 205.91
• Section 205.92 Definitions.
  As used in this act: (a) "Person" means an individual, firm, partnership, joint venture, association, social club, fraternal organization, municipal or private corporation whether...
• Section 205.92b 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 205.92c Definitions.
  As used in this act: (a) "Authority" means the local community stabilization authority created under the local community stabilization authority act. (b) "Basic school...
• Section 205.93 Tax 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; Limitation.
  (1) There is levied upon and there shall be collected from every person in this state a specific tax, including both the local community...
• Section 205.93a Tax For Use Or Consumption; Services; Charges For Intrastate Telecommunications Services Or Telecommunications Services Between State And Another State; Bundled Transaction; Definitions.
  (1) The use or consumption of the following services is taxed under this act in the same manner as tangible personal property is taxed...
• Section 205.93b Tax 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.
  (1) The use or consumption of mobile wireless services is subject to the tax levied under this act in the same manner as tangible...
• Section 205.93c Sale Of Telecommunications Services; Definitions.
  (1) Except for the defined telecommunications services in section 3b and subsection (3), the sale of telecommunications service sold on a call-by-call basis shall...
• Section 205.93d Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
  Compiler's Notes: The repealed section pertained to services taxed in same manner as tangible personal property.Enacting section 2 of Act 145 of 2007 provides:"Enacting section...
• Section 205.93e Persons Providing Services Subject To Tax; Collection; Refund; Liability For Failure To Collect Tax; Remittance; Certain Collections Or Penalties By Department Of Treasury Prohibited.
  Beginning December 1, 2007, all of the following apply: (a) A person that provides 1 or more of the services subject to the tax...
• Section 205.93f Use Or Consumption Of Medical Services Provided Under Social Welfare Act; Tax; "Medical Services" Defined.
  Beginning April 1, 2014, the use or consumption of medical services provided by entities identified in, and pursuant to contracts identified under, section 106(2)(a)...
• Section 205.94 Exemptions.
  (1) The following are exempt from the tax levied under this act, subject to subsection (2): (a) Property sold in this state on which...
• Section 205.94a Additional Exemptions.
  The following are exempt from the tax under this act: (a) Rental receipts if the tangible personal property rented or leased was previously subject...
• Section 205.94b, 205.94c Repealed. 2004, Act 172, Eff. Sept. 1, 2004.
  Compiler's Notes: The repealed sections pertained to tax exemptions for certain property and existing contracts.
• Section 205.94d Exemptions; Food Or Drink From Vending Machines; 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 205.94e Repealed. 2004, Act 172, Eff. Sept. 1, 2004.
  Compiler's Notes: The repealed section pertained to tax exemption for property used in constructing, altering, repairing, or improving real estate.
• Section 205.94f Computing 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.
  (1) In computing the amount of tax payments required for any month of a seller not subject to section 6(2) who collects the tax...
• Section 205.94g Exemption Of Property Purchased As Part Of Purchase Or Transfer Of Business; Exceptions; Definition.
  (1) The tax levied shall not apply to property purchased from a seller or transferor if the property is part of the purchase or...
• Section 205.94h Tax Inapplicable To Property For Use In Qualified Business Activity.
  The tax levied under this act does not apply to tangible real or personal property to the extent the tangible real or personal property...
• Section 205.94i Exemption For Drop Shipments; Definition.
  (1) A seller required to collect the tax under this act shall be exempt from collecting the tax on sales of tangible personal property...
• Section 205.94j Exemption Of Motor Vehicle Acquired By Towing Company From Police Agency; Definitions.
  (1) The tax levied under this act does not apply to a motor vehicle acquired by a towing company from a police agency as...
• Section 205.94k Tax Inapplicable To Parts And Materials Affixed To Certain Aircraft, Sale Of Aircraft, Rolling Stock, And Qualified Truck Or Trailer; Definitions.
  (1) The tax levied under this act does not apply to parts and materials, excluding shop equipment or fuel, affixed to or to be...
• Section 205.94l Storage, Use, Or Consumption Of Rail Freight Or Passenger Cars, Locomotives Or Other Rolling Stock, Roadway Machines And Certain Work Equipment; Applicability Of Tax; Exception.
  The tax levied under this act does not apply to the storage, use, or consumption of rail freight or passenger cars, locomotives or other...
• Section 205.94m Personal Property Affixed To Or Made Structural Part Of Sanctuary; Applicability Of Tax; “regularly Organized Church Or House Of Religious Worship” Or “sanctuary” Defined.
  (1) The tax levied under this act does not apply to tangible personal property acquired by a person engaged in the business of constructing,...
• Section 205.94n Electricity, Natural Gas, And Home Heating Fuels For Residential Use; Exemption From Use Tax At Additional Rate.
  The consumption of electricity, natural gas, and home heating fuels for residential use is exempt from the use tax at the additional rate of...
• Section 205.94o Exemptions; Limitation; Industrial Processing; Definitions.
  (1) The tax levied under this act does not apply to property sold to the following after March 30, 1999, subject to subsection (2):...
• Section 205.94p Extractive Operations; Exemption; Limitation; Eligible Property; Definitions.
  (1) The tax under this act does not apply to property sold to an extractive operator for use or consumption in extractive operations. (2)...
• Section 205.94q 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 205.94r Repealed. 2004, Act 172, Eff. Sept. 1, 2004.
  Compiler's Notes: The repealed section pertained to property used or consumed in industrial processing.
• Section 205.94s Construction Or Improvement Of Property Of Nonprofit Hospital Or Housing; "Affixed To And Made A Structural Part Of" Defined; Exemption Not Granted; Definitions.
  (1) For taxes levied after June 30, 1999, the tax levied under this act does not apply to property purchased by a person engaged...
• Section 205.94u Storage, Use, Or Consumption Of Investment Coins And Bullion; Applicability Of Tax; Definitions.
  (1) Beginning July 7, 1999, the tax under this act does not apply to the storage, use, or consumption of investment coins and bullion....
• Section 205.94v Repealed. 2004, Act 172, Eff. Sept. 1, 2004.
  Compiler's Notes: The repealed section pertained to construction or improvement of building of nonprofit hospital.
• Section 205.94w Applicability Of Tax; Exceptions; Definitions.
  (1) Beginning April 1, 2005, the tax levied under this act does not apply to either of the following: (a) The donation of a...
• Section 205.94x 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 205.94y Storage, Use, Or Consumption Of Automobile Provided By Family Independence Agency Or Qualified Organization; Applicability Of Tax.
  (1) Beginning January 1, 2005, the tax levied under this act does not apply to the storage, use, or consumption of an eligible automobile...
• Section 205.94z Certain Property Affixed To Or Made Structural Part Of Qualified Convention Facility; "Qualified Convention Facility" Defined.
  The tax levied under this act does not apply to tangible personal property acquired before January 1, 2016 by a person engaged in the...
• Section 205.94aa Storage, Use, Or Consumption Of Tangible Personal Property For Use As Or At Mineral-producing Property; Exemption; "Mineral-producing Property" And "Taxpayer" Defined.
  (1) Subject to subsection (2), the tax under this act does not apply to the storage, use, or consumption of tangible personal property sold...
• Section 205.94bb Applicability Of Tax To Certain Transfers.
  Beginning January 1, 2014, the tax under this act does not apply to a transfer of a vehicle, ORV, manufactured housing, aircraft, snowmobile, or...
• Section 205.95 Registration 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 Agreement.
  (1) Except as otherwise provided in this subsection or subsection (5), a person subject to the tax under this act shall register with the...
• Section 205.95a Sale Of Tangible Personal Property; Nexus With State; Presumptions; Purchase Of Advertisements; Agreement; Effectiveness Of Section; Definitions.
  (1) A seller who sells tangible personal property is presumed to have nexus with this state and shall register with the department and collect...
• Section 205.96 Use 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 Date.
  (1) Every person storing, using, or consuming tangible personal property or services, the storage, use, or consumption of which is subject to the tax...
• Section 205.96a Reepaled. 2006, Act 673, Eff. Jan. 1, 2011.
  Compiler's Notes: The repealed section pertained to qualified athletic event.
• Section 205.97 Liability For Tax.
  (1) Each person storing, using, or consuming in this state tangible personal property or services is liable for the tax levied under this act,...
• Section 205.98 Direct Payment Authorization.
  (1) The department may authorize a person to assume the obligation of self-accruing and remitting use tax due on purchases or leases directly to...
• Section 205.99 Personal Liability Of Seller Or Certified Service Provider For Failure To Collect Tax; Definition.
  (1) If a seller or certified service provider who is required or authorized to collect the tax fails to do so, the seller or...
• Section 205.99a Bad Debt Deduction.
  (1) In computing the amount of tax levied under this act for any month, a seller may deduct the amount of bad debts from...
• Section 205.100 Administration 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 Act.
  (1) The tax imposed by this act shall be administered by the department under 1941 PA 122, MCL 205.1 to 205.31, the streamlined sales...
• Section 205.100a Receipt And Collection Of Local Community Stabilization Share.
  The department shall administer under this act and under 1941 PA 122, MCL 205.1 to 205.31, the receipt and collection of the local community...
• Section 205.101 Refund Or Credit For Returned Tangible Personal Property Or Service; Written Notice.
  (1) If a person liable for collection of the tax under this act refunds or provides a credit for all or a portion of...
• Section 205.101a Selling 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 Owner.
  If any person liable for a tax levied under this act sells a business or stock of goods, or quits the business, that person...
• Section 205.102 Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.
  Compiler's Notes: The repealed section pertained to MPU exemption.
• Section 205.103 Exemption Form.
  (1) A purchaser of direct mail other than a holder of a direct pay permit under section 8 shall provide to the seller at...
• Section 205.104 Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.
  Compiler's Notes: The repealed section pertained to requirements for keeping inventory of daily records.
• Section 205.104a Inventory And Records; Maintenance; Preservation; Tax Liability; Failure To File Return Or Preserve Records; Tax Assessment; Basis; Indirect Audit; Burden Of Proof; Blanket Exemption; "Indirect Audit Procedure" And "Sufficient Records" Defined.
  (1) A person in the business of selling tangible personal property and liable for any tax under this act shall keep in a paper,...
• Section 205.104b Exemption Claimed By Purchaser.
  (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 205.105 Failing To Register; Penalty.
  Any seller who fails to register with the department as required under this act, shall be deemed guilty of a misdemeanor and upon conviction...
• Section 205.106 Seller's Failure To Comply With Act; Penalty.
  Any seller who fails, neglects or refuses to collect the tax as required by this act, or fails, neglects or refuses to comply with...
• Section 205.107 Computation Of Tax Amount; Rounding Up To Whole Cent.
  Beginning not later than January 1, 2006, in determining the amount of the tax under this act, the seller shall compute the tax to...
• Section 205.108 Consumer's Failure To Comply With Act; Making False Statement; Penalty.
  Any consumer who refuses to pay the tax as required by this act, or refuses to comply with the provisions of this act, or...
• Section 205.109 Collection Or Payment Of Tax; Benefit To State, Authority, And Metropolitan Areas.
  (1) The tax collected by the seller from the consumer or lessee under this act is for the benefit of this state, the authority,...
• Section 205.110 Sourcing Requirements.
  (1) For sourcing a sale subject to tax under this act, the following apply: (a) If a product is received by the purchaser at...
• Section 205.111 Deposit And Disbursement Of Money.
  (1) Except as provided in subsections (2), (3), and (4), all money received and collected under this act shall be deposited by the department...

Last modified: October 10, 2016