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Notice: Report for Qualified Data Center Exemptions - Form 5726
Issued: December 14, 2020
Public Acts 29 and 30 of 2020 (“Acts”), which became effective February 13, 2020, established certain reporting obligations on persons claiming sales or use tax exemptions regarding the sale or purchase of data center equipment (“Equipment”) under MCL 205.54ee and/or MCL 205.94cc.
Specifically, the Acts require such persons to annually report the sales or purchase price of Equipment sold to, or purchased by, them each calendar year for which the exemptions were claimed. In addition to reporting the sales and/or purchase price of such Equipment, these persons must provide any other information required by the Department to determine the amount of revenue lost to the School Aid Fund from claiming these exemptions.
The Acts provide that this reporting must be submitted on a form and at the time and in the manner prescribed by the Department. The Department has issued Form 5726 (Report for Qualified Data Center Exemptions) for the purpose of reporting the information required by the Acts. Form 5726 is available under the Business Taxes (Sales and Use Tax) Forms and Instructions section of the Department’s website at: www.michigan.gov/taxes.
Form 5726 must be filed no later than January 31 of the year immediately following the close of the calendar year being reported and contains instructions for how to submit the form to the Department. The filing of Form 5726 is to fulfill obligations under the Acts and is not a means for claiming an exemption, must not include any remittance for tax, and does not constitute a return or otherwise alleviate any obligations under either MCL 205.56 or MCL 205.96.
NOTE: The filing of Form 5726 is not required for a particular calendar year if no Equipment was sold/purchased or an exemption under MCL 205.54ee and/or MCL 205.94cc was not claimed for the sale or purchase of Equipment.
For questions concerning the filing of Form 5726, please contact Tax Technical Services at 517-636-4357. For information concerning the data center exemptions, please refer to the Department’s Notice Regarding Data Center Exemption, updated March 14, 2016.