Title 205, TAXATION

Sec. 13a. (1) For sales of advertising and promotional direct mail all of the following apply: (a) If the purchaser provides the seller with a direct payment authorization issued under section 8 or an exemption form as prescribed by the department for claiming direct mail, the se…

Sec. 14a. (1) A person in the business of selling tangible personal property and liable for any tax under this act shall keep in a paper, electronic, or digital format an accurate and complete beginning and annual inventory and purchase records of additions to inventory, complete…

Sec. 14b. (1) If an exemption from the tax under this act is claimed, the seller shall obtain identifying information of the purchaser and the reason for claiming the exemption at the time of the purchase or at a later date. The seller shall obtain the same information for a clai…

Sec. 15. Any seller who fails to register with the department as required under this act, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined the sum of $25.00 for each day such failure, neglect or refusal to so register continues after notice to su…

Sec. 16. Any seller who fails, neglects or refuses to collect the tax as required by this act, or fails, neglects or refuses to comply with the provisions of this act, or excepting as expressly authorized pursuant to this act, refunds, remits or rebates to a consumer, either dire…

Sec. 17. Beginning not later than January 1, 2006, in determining the amount of the tax under this act, the seller shall compute the tax to the third decimal place and round up to a whole cent when the third decimal place is greater than 4 or round down to a whole cent when the t…

Sec. 18. Any consumer who refuses to pay the tax as required by this act, or refuses to comply with the provisions of this act, or makes to the seller a false statement or certificate indicating that the storage, use or consumption is not subject to the tax herein imposed, shall …

Sec. 19. (1) The tax collected by the seller from the consumer or lessee under this act is for the benefit of this state, the authority, and the metropolitan areas of this state, including, but not limited to, local communities within the metropolitan areas. A person other than t…

Sec. 20. (1) For sourcing a sale subject to tax under this act, the following apply: (a) If a product is received by the purchaser at a business location of the seller, the sale is sourced to that business location. (b) If a product is not received by the purchaser at a business …

Sec. 21. (1) Except as otherwise provided in this section, all money received and collected under this act must be deposited by the department in the state treasury to the credit of the general fund, to be disbursed only by appropriations by the legislature. (2) The collections f…

Sec. 1. This act may be cited as the "Use Tax Act".

Sec. 2. (1) As used in this act: (a) "Person" means an individual, firm, partnership, joint venture, association, social club, fraternal organization, municipal or private corporation whether or not organized for profit, company, limited liability company, estate, trust, receiver…

Sec. 2b. 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 by volume. (b) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a resu…

Sec. 2c. As used in this act: (a) "Authority" means the local community stabilization authority created under the local community stabilization authority act. (b) "Basic school operating mills" means school operating mills used to calculate the state portion of a local school dis…

Sec. 3. (1) There is levied upon and there shall be collected from every person in this state a specific tax, including both the local community stabilization share and the state share, for the privilege of using, storing, or consuming tangible personal property in this state at …

Sec. 3a. (1) The use or consumption of the following services is taxed under this act in the same manner as tangible personal property is taxed under this act: (a) Except as provided in section 3b, intrastate telecommunications services that both originate and terminate in this s…

Sec. 3b. (1) The use or consumption of mobile wireless services is subject to the tax levied under this act in the same manner as tangible personal property regardless of where the mobile wireless services originate, terminate, or pass through, subject to all of the following: (a…

Sec. 3c. (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 be sourced to each level of taxing jurisdiction where the call originates and terminates in that jurisdictio…

Sec. 3e. Beginning December 1, 2007, all of the following apply: (a) A person that provides 1 or more of the services subject to the tax under this act pursuant to section 3d shall not collect the tax from any person that receives a service subject to the tax under this act pursu…

Sec. 3f. Except as otherwise provided under this section, beginning April 1, 2014 through December 31, 2016, the use or consumption of medical services provided by entities identified in, and pursuant to contracts identified under, section 106(2)(a) and section 109f(2) of the soc…

Sec. 4. (1) The following are exempt from the tax levied under this act, subject to subsection (2): (a) Property sold in this state on which transaction a tax is paid under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, if the tax was due and paid on the retail sal…

Sec. 4a. The following are exempt from the tax under this act: (a) Rental receipts if the tangible personal property rented or leased was previously subject to 1 of the following when purchased by the lessor: (i) This act. (ii) The general sales tax act, 1933 PA 167, MCL 205.51 t…

Sec. 4aa. (1) Subject to subsection (2), the tax under this act does not apply to the storage, use, or consumption of tangible personal property sold to a taxpayer for use as or at mineral-producing property. (2) The property under subsection (1) is exempt only to the extent that…

Sec. 4bb. Beginning January 1, 2014, the tax under this act does not apply to a transfer of a vehicle, ORV, manufactured housing, aircraft, snowmobile, or watercraft if the transferee or purchaser is the father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, dau…

Sec. 4cc. (1) Subject to subsections (2) and (3), beginning January 1, 2016 through December 31, 2050, the tax under this act does not apply to the storage, use, or consumption of data center equipment sold to the owner or operator of a qualified data center or a colocated busine…

Sec. 4d. (1) The following are exempt from the tax under this act: (a) Sales of drugs for human use that can only be legally dispensed by prescription, over-the-counter drugs for human use that are legally dispensed by prescription, or food or food ingredients, except prepared fo…

Sec. 4dd. The tax levied under this act does not apply to tangible personal property acquired by a person engaged in the business of altering, repairing, or improving real estate for others, or to the manufacture of a product as described under section 3a(1)(f) or (g), if the pro…

Sec. 4ee. A person engaged in the business of constructing, altering, repairing, or improving real estate for others is not liable for the tax levied under this act for storing, using, or consuming tangible personal property acquired from another person to the extent that the tan…

Sec. 4f. (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 from the purchaser under the provisions of this act, the seller who collects the tax from a purchaser may deduct the amount provided by subdivi…

Sec. 4ff. (1) The sale to a hospital or freestanding surgical outpatient facility of a prosthetic device for implantation into a human is exempt from the tax imposed by this act. (2) As used in this section: (a) "Freestanding surgical outpatient facility" means a facility license…

Sec. 4g. (1) The tax levied shall not apply to property purchased from a seller or transferor if the property is part of the purchase or transfer of a business. (2) The exemption provided by this section shall not apply to all of the following: (a) The purchase or transfer of tan…

Sec. 4gg. (1) Beginning January 1, 2026, the storage, use, or consumption of eligible fuel is exempt from the tax under this act. (2) As used in this section: (a) "Alternative fuel" means that term as defined in section 151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151. (b…

Sec. 4h. The tax levied under this act does not apply to tangible real or personal property to the extent the tangible real or personal property is used in a qualified business activity of the purchaser. As used in this section, "qualified business activity" means that term as de…

Sec. 4i. (1) A seller required to collect the tax under this act shall be exempt from collecting the tax on sales of tangible personal property if the tangible personal property is part of a drop shipment and if the taxpayer complies with the requirements of subsection (3). (2) A…

Sec. 4j. (1) The tax levied under this act does not apply to a motor vehicle acquired by a towing company from a police agency as satisfaction for towing and storage charges if the motor vehicle was impounded by the police agency or determined to be an abandoned vehicle or an aba…

Sec. 4k. (1) The tax levied under this act does not apply to parts and materials, excluding shop equipment or fuel, affixed to or to be affixed to an aircraft owned or used by a domestic air carrier that is any of the following: (a) An aircraft for use solely in the transport of …

Sec. 4l. The tax levied under this act does not apply to the storage, use, or consumption of rail freight or passenger cars, locomotives or other rolling stock, roadway machines and work equipment primarily of a flanged wheel nature, accessories, attachments including parts and m…

Sec. 4ll. (1) Beginning 90 days after the effective date of the amendatory act that added this section through December 31, 2024, the tax levied under this act does not apply to the storage, use, or consumption of a firearm safety device. On the retail sale or transfer of a firea…

Sec. 4m. (1) The tax levied under this act does not apply to tangible personal property acquired by a person engaged in the business of constructing, altering, repairing, or improving real estate for others if the property is to be affixed to or made a structural part of a sanctu…

Sec. 4n. The consumption of electricity, natural gas, and home heating fuels for residential use is exempt from the use tax at the additional rate of 2% approved by the electors on March 15, 1994.

Sec. 4o. (1) The tax levied under this act does not apply to property sold to the following after March 30, 1999, subject to subsection (2): (a) An industrial processor for use or consumption in industrial processing. (b) A person, whether or not the person is an industrial proce…

Sec. 4p. (1) The tax under this act does not apply to property sold to an extractive operator for use or consumption in extractive operations. (2) The property under subsection (1) is exempt only to the extent that the property is used for the exempt purposes stated in this secti…

Sec. 4q. (1) The tax levied under this act does not apply to the purchase of machinery and equipment for use or consumption in the rendition of any combination of services, the use or consumption of which is taxable under section 3a(1)(a) or (c) or 3b except that this exemption i…

Sec. 4s. (1) For taxes levied after June 30, 1999, the tax levied under this act does not apply to property purchased by a person engaged in the business of constructing, altering, repairing, or improving real estate for others to the extent that the property is affixed to and ma…

Sec. 4u. (1) Beginning July 7, 1999, the tax under this act does not apply to the storage, use, or consumption of investment coins and bullion. (2) As used in this section: (a) "Bullion" means gold, silver, or platinum in a bulk state, where its value depends on its content rathe…

Sec. 4w. (1) Beginning April 1, 2005, the tax levied under this act does not apply to either of the following: (a) The donation of a motor vehicle to a regularly organized church or house of religious worship that received the motor vehicle with the intent that it be donated to a…