Yes, if the customer is authorized by Treasury and has a "direct pay permit" that covers the property purchased or leased. 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 (RAB) 2016-14. 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.
The Michigan Department of Treasury does not issue tax exempt numbers. 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:
Note: A seller should not solely accept an FEIN as evidence of exemption from sales and use taxes.
To claim exemption, a purchaser must provide the supplier with one of the following:
Michigan provides an exemption from sales or use tax on machinery or equipment used in industrial processing and in their repair and maintenance. The exemption does not include tangible personal property affixed to and becoming a structural part of real estate.
For further information on exemptions refer to Revenue Administrative Bulletin 2000-4.
Michigan provides an exemption from sales or use tax on tangible personal property used in tilling, planting, caring for or harvesting things of the soil, in the breeding, raising or caring of livestock poultry or horticultural products for further growth. The exemption does not include tangible personal property affixed to and becoming a structural part of real estate.
For further information on exemptions refer to Qualified Agricultural Property Exemption Guidelines.
NOTE: Your first tractor/trailer lease/purchase IS NOT EXEMPT from Michigan sales or use tax.
In order to be exempt from Michigan sales or use tax certain criteria must be met. Exemption is allowed in Michigan on the sale of rolling stock purchased by an interstate motor carrier or for the rental or lease of rolling stock to an interstate motor carrier and used in interstate commerce.
According to MCL 205.54r,
Motor carriers who qualify may claim exemption from sales or use tax by providing the seller or lessor with the prescribed Form 3372, Michigan Sales and Use Tax Certificate of Exemption. The buyer or lessee would check the box "Rolling Stock purchased by an Interstate Motor Carrier".
ONLY vans or buses may be purchased exempt if the manufacturer's rated seating capacity is 10 or more and it is used primarily for transportation of persons for religious purposes.
Organizations exempted by statute, organizations granted exemption from federal income tax under Internal Revenue Code Section 501(c)(3) or 501(c)(4), or organizations that had received an exemption letter from the Michigan Department of Treasury prior to June 1994 are entitled to sales and use tax exemption in the State of Michigan.
Please refer to Revenue Administrative Bulletin (RAB) 2020-25 for more information on the exemption from Michigan sales and use tax as it relates to nonprofit entities.
In order to claim exemption, the nonprofit organization must provide the seller with both:
The Michigan Department of Treasury does not issue "tax exempt numbers".
Form 3372, Michigan Sales and Use Tax Certificate of Exemption, is used to claim exemption from Michigan Sales and Use Tax. The buyer must present the seller with a completed form at the time of purchase. For more information on exemption requirements and the procedures to claim an exemption see Revenue Administrative Bulletin 2002-15.
The Department of Treasury does not issue or accept tax exempt numbers. Sellers should not accept a tax exempt number as evidence of exemption from sales and use tax.
To claim exemption for purchases, the buyer must present the seller with a completed Form 3372, Michigan Sales and Use Tax Certificate of Exemption. The seller will retain the certificate in their records.
To claim exemption, a retailer must provide the supplier with a completed Form 3372, Michigan Sales and Use Tax Certificate of Exemption, indicating that the purchase is for "Resale at Retail". Their sales tax license number must be included in the space provided.
NOTE: A seller should not accept a FEIN as evidence of exemption from sales and use taxes without Form 3372.
Effective October 1, 2009, a bad debt deduction may be claimed by a third-party lender or a retailer, provided that the retailer who reported the tax and the third-party lender financing the sale execute and maintain a written election designating which party is entitled to claim the deduction. There is no Treasury form to make this election. However, the election must be written, must be signed by both parties, and must clearly and unequivocally state which party is entitled to the deduction; the mere assignment of the right to the debt alone does not satisfy the written election requirement. The election must be executed before the bad debt is incurred.
The written election must be retained by the parties and made available to the Department upon request or audit. In addition to the written election, the following conditions must also be met:
A party making a refund claim must provide the written election to the Department with its refund request. A request for a refund based on bad debt incurred from the sale of motor vehicle must include a copy of the RD-108 for that vehicle.
For purposes of this deduction, “lender” includes any of the following:
The following amounts shall not be included as bad debt:
Source MCL 205.54i; MCL 205.99.
Michigan provides a sales and use tax exemption to interstate (fleet) motor carriers for rolling stock and parts affixed to rolling stock that are purchased, rented or leased by an interstate (fleet) motor carrier and used in interstate commerce. The exemption is for the purchase or use of qualified trucks and trailers (and parts affixed to them) that are purchased, leased, or rented after April 30, 1999. For additional information please refer to Internal Policy Directive 2003-1 and Internal Policy Directive 2010-1.
Interstate (fleet) motor carriers who qualify for exemption may claim exemption from sales or use tax by providing the seller or lessor with the prescribed Michigan Sales and Use Tax Certificate of Exemption, form 3372. The buyer or lessee would check the box "Rolling Stock purchased by an Interstate Motor Carrier".
Michigan grants an exemption from use tax when the buyer and seller have a qualifying family relationship.
