REVENUE ADMINISTRATIVE BULLETIN 1989-27

Approved: April 12, 1989

CIGARETTE TAX APPLICABILITY TO MICHIGAN CORRECTIONAL FACILITIES

RAB-89-27. This Bulletin clarifies provisions of the Cigarette Tax Act 265, PA 1947, as amended, concerning its application to the State of Michigan correctional facilities.

State of Michigan correctional facilities are not exempt; from the provisions of the Cigarette Tax Act, nor are the inmates of these facilities immune from the Michigan cigarette tax.

Michigan state correctional facilities that import or acquire cigarettes from any source other than a wholesaler or secondary wholesaler licensed under the Act for sale through prison stores, are subject to registration as an "unclassified acquirer" as defined in MCL 205.501(g), of the Cigarette Tax Act. Unclassified acquirers must report and remit the cigarette tax on sales as provided in MCL 205.507. See also Michigan Department of Treasury Cigarette Tax Rules, 1979 AC, R 205.401(m).

Michigan state correctional facilities that manufacture cigarettes are subject to registration as an unclassified acquirer and must also report and remit cigarette tax on sales as provided in MCL 205.507.