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Exemptions FAQ

Can a customer instruct a seller not to charge sales or use tax because they will pay it directly to Michigan?

Generally no, however, if the customer is authorized by Treasury and has a "direct pay permit" that covers the property purchased or leased, the customer can instruct a seller not to charge sales or use tax because they will pay it directly to Michigan. The customer must provide to the seller a completed Form 3372, Michigan Sales and Use Tax Certificate of Exemption, or the required information in another acceptable format. See Revenue Administrative Bulletin 2022-19. When stating its basis for claiming an exemption, the customer should state, "Authorized to pay sales or use taxes on purchases of tangible personal property directly to the State of Michigan" and must include its account number.

Note: A seller is authorized (but not required) under MCL 205.73(1) to reimburse itself for the sales that is due from the seller by collecting the sales tax from the customer.

Does Michigan issue tax exempt numbers? If not, how do I claim an exemption from sales or use tax?

Treasury does not issue tax exempt numbers. Sellers should not accept a tax exempt number as evidence of exemption from sales and use tax. In order to claim an exemption from sales or use tax, a purchaser must provide a valid claim of exemption to the vendor by completing one of the following:

  • Michigan Sales and Use Tax Certificate of Exemption (Form 3372)
  • Multistate Tax Commission's Uniform Sales and Use Tax Certificate
  • Streamlined Sales and Use Tax Agreement Certificate or the same information in another format.

Note: A seller should not solely accept an FEIN as evidence of exemption from sales and use taxes. For further information on exemption claim procedures and formats, refer to Revenue Administrative Bulletin 2022-19.

Use Tax Exemption on Vehicle Title Transfers

Michigan grants an exemption from use tax when the buyer and seller have a qualifying family relationship. For more information please refer to Revenue Administrative Bulletin 2018-5.

Read the brochure for details