REVENUE ADMINISTRATIVE BULLETIN 1989-26

Approved: April 12, 1989

CIGARETTE SALES ON INSTALLATIONS OPERATED BY THE FEDERAL GOVERNMENT

RAB-89-26. This Bulletin clarifies the Department's position concerning the taxability of cigarettes sold at facilities operated by the Federal Government (military bases and federal prisons).

Cigarettes sold on military bases are exempt from Michigan cigarette tax. The Department is of the opinion that the base commanding officer should impose limits on the amount of cigarettes sold (six cartons per person, including not more than two separate brands), to limit the misuse of the privilege of purchasing tax-free.

Cigarettes distributed to federal prisons, not for resale by the prison to the public, are exempt from the Michigan cigarette tax.