Michigan Department of Treasury

Use Tax Frequently Asked Questions

A. NAME OF PERMIT OR APPROVAL:

Use Tax

B. STATUTORY AUTHORITY:

PA 122 of 1941

C. APPLICABLE REGULATION:

Michigan Administrative Code, Rules administered by the Department of Treasury

State Tax Commission General Rules (R 209.1 - 209.75)

D. SUMMARY OF PERMIT/APPROVAL PROCESS:

 1.  Applicability (activities that require the permit)

Register for Use Tax if you:

·       Lease tangible personal property in Michigan

·       Sell telecommunication services

·       Provide transient hotel or motel room rentals

·       Buy goods for your own use from out-of-state unlicensed vendors

·       Launder or clean textiles under a sole rental or service agreement with a term of at least five days.

Use Tax on Rental or Leased Property You may elect to pay use tax on receipts from the rental or lease of the tangible personal property instead of paying the sales or use tax on the full cost of the property at the time it is acquired. If you elect to pay use tax on receipts from the rental or lease, you must first obtain a Use Tax Registration before you acquire the property.

 2.  Pre-Application Requirements

·       Obtain a Federal Employer Identification Number (FEIN)

·       Obtain Special Licenses

 3.  Application Submission Requirements

 4.  Procedures and Time-Frame for Obtaining Permit or Approval

Complete the registration process at least six weeks, but not more than six months, before you intend to start your business to allow your registration to be processed.

 5.  Operational Requirements

 6.  Fees

None

 7.  Appeal Process

 8.  Public Input Opportunities

Contact Information:

Contact Us

Creation/Revision Date:

September 15, 2010