Michigan – Revised Sales and Use Tax Rules

SALT Report 2565 – The Michigan Department of Treasury announced that the following sales and use tax rules have been revised.

Rule 205.15 – Trade-In Deduction
This rule now states that sellers may not deduct a credit allowed for a trade-in from the sales price of a retail sale. Instead, tax applies to the full sales price without regard to the trade-in amount.

Rule 205.20 – General Application
This rule now requires that all administrative rules must be read and interpreted in their entirety, taking into account the effect of all pertinent legislation, rules, and court decisions.

Rule 205.28 – Use Tax Included in Gross Proceeds
This rule now states that sellers are required to collect use tax as a separate line item and are prohibited from including the charge in the sales price or purchase price.

The promulgated rules took effect on May 6, 2013.

For Further Information

Michigan Department of Treasury – Notice to Taxpayers