JD SUPRA BUSINESS ADVISOR
2/13/2017byEdward Castellani | Fraser Trebilcock
New laws on the sales tax and use tax consequences on direct mail became effective in Michigan September 7, 2016. These laws were adopted as part of Michigan’s participation in the Streamlined Sales and Use Tax Agreement, and are intended to clarify to which State sales or use tax must be sourced when mail is mailed out of State.
Some of the important points in the new laws are the following:
The law makes a distinction in tax treatment between advertising or promotional direct mail and other direct mail. Advertising and promotional direct mail is defined as direct mail the primary purpose of which is to attract attention to, or to attempt to sell, a product or service, person, business or organization. Other direct mail is defined as mail that is not advertising and promotional direct mail, including invoices, bills, statements, payroll advice, any legally required notices, and any other non-promotional direct mail such as newsletters and informational pieces.