Date: Thu, 25 Oct 2007 08:05:40 -0400
Subject: Michigan Use Tax on Form MI-1040 for Tax Year 2007

Every state that has a sales tax has a companion tax for purchases made outside that state, by catalog or over the Internet. In Michigan, that companion tax is called the ?use tax," but might be described more accurately as a remote sales tax because it is a 6 percent tax owed on purchases made outside of Michigan. Use tax is paid on the 2007 Form MI-1040, line 24. Complete the Use Tax Worksheet (Worksheet 1) on page 9 of the 2007 MI-1040 book to calculate the use tax and enter the amount of use tax due on line 24. The use tax line is required to be filled out beginning in tax year 2007. If the taxpayer is claiming no use tax due, a zero should be entered on line 24. For additional information on Michigan use tax please see page 9 of the 2007 MI-1040 instruction booklet. The 2007 instruction booklet will be available on our Web site www.michigan.gov/taxes in mid to late December.