Revenue Administrative Bulletin 2000-6

Withdrawal of Letter Rulings

Approved: August 18, 2000

RAB 2000-6. This Revenue Administrative Bulletin identifies Letter Rulings that the Bureau of Revenue is withdrawing from publication. The Bulletin is intended to clarify the Department's treatment of Letter Rulings and to explain why they will be periodically withdrawn.

Issues

1. What is the purpose of a Letter Ruling?
2. Why are some Letter Rulings being withdrawn?
3. What is the effective date for the withdrawal of these Letter Rulings?
4. What Letter Rulings are being withdrawn by this RAB?

Conclusions

1. A Letter Ruling is published to provide the public with an example of how the Department would apply tax law to a particular set of facts. In addition, a Letter Ruling provides a fast and informal means of increasing public understanding of the Department's interpretation of tax law.

   It is important to note that a Letter ruling is not binding on either the Department or taxpayers. The only exception is that, to the extent the language in a Letter Ruling is also used in the Department's written response to a specific taxpayer's request, the Letter Ruling is binding on both the taxpayer and the Department.

2. The Department will periodically withdraw Letter Rulings from publication that are not good examples. A Letter Ruling ceases to be a good example when changes in the law cause the Letter Ruling to become obsolete, or when the Department determines that the Letter Ruling confuses rather than assists the public.
3. The Letter Rulings listed in this RAB are withdrawn from publication on the effective date of this RAB. The date on which these letter rulings are withdrawn from publication generally do not reflect the date on which letter rulings ceased to be valid. The standard interpretative rules concerning retroactive or prospective application do not apply to a Letter Ruling. This is because, as noted above, a Letter Ruling is not binding law, but only an example provided to assist taxpayers. Consequently, the withdrawal of a Letter Ruling does not change existing law.
4. The following Letter Rulings are being withdrawn:

Withdrawn Sales & Use Tax Letter Rulings

[General Sales Tax Act, 1933 PA 167 and Use Tax Act, 1937 PA 94]

LR 70-2 - Advertisement; Reimbursement of Taxpayer; Brackets

LR 70-4 - Independent Logging Contractors

LR 70-6 - Repairers and Servicers

LR 71-4 - Newspapers, Magazines and Other Publications

LR 71-5 - Printing Mailing Service

LR 71-7 - Airplanes/Flight School

LR 72-7 - Agricultural Production [Greenhouse Boiler]

LR 73-6 - Schools [Bingo Equipment and Prizes]

LR 74-1 - Retail Sale/Coins and Other Precious Metals

LR 74-2 - Student Food

LR 74-4 - Shipment by Interstate Commerce--Common Carrier

LR 74-6 - Sales by Governmental Entities

LR 74-8 - Bookbinders and Paper Cutters

LR 75-3 - Manufacture and Installation of Industrial Conveyor Systems

LR 75-6 - Purchases by Social Services for Welfare Clients

LR 75-9 - Repairers and Servicers/Cable TV

LR 75-10 - Exemption of Leased Rolling Stock

LR 76-3 - Bicentennial Organizations

LR 76-4 - Combined Returns

LR 76-6 - Sales of Oxygen and Related Dispensing Units

LR 76-8 - Sale of Explosive Materials for Extractive Operations

LR 76-15 - Food for Human Consumption

LR 76-16 - Taxability of Food Baskets

LR 77-3 - Senior Citizen Apartment Complex

LR 77-6A - Sales and Use Tax Applicability for Materials Used for Cementing Pipe, Casing, and Production String in Oil and Gas Well Operations

LR 78-3 - Schools [Seminars and Workshops for Non-Students]

LR 78-4 - Reconditioners Versus Servicers/Repairers

LR 78-6 - Sales of Drugs to Hospitals, Doctors and Clinics

LR 78-7 - Automobile Purchased Out-if-State by Resident Military Personnel

LR 78-11 - Food for Human Consumption

LR 78-13 - Medical Equipment and Appliances Physicians

LR 79-5 - Nursing Homes

LR 79-6 - Advertisement; Reimbursement of Taxpayer: Brackets

LR 79-9 - Church [Meals]

LR 79-10 - Contractors for Churches

LR 79-13 - Nonprofit Sales to a Contractor for Use in Affixation to Realty of Nonprofit Entity

LR 81-3 - Nonprofit Exemption is not Assignable

LR 81-6 - Newspapers, Magazines and Other Publications

LR 81-7 - Local Hotel or Motel Assessment Fees

LR 81-10 - Vessels and Watercraft

LR 83-5 - Material Handling Services for Electrical Power Production

LR 83-9 - Sales of Dental Hygiene Products

LR 84-5 - Telephone and Telegraph

LR 84-6 - Sales to Automotive Body Shops

LR 84-7 - Automobiles Purchased in Europe

LR 85-10 - Taxability of Oil Well Servicing Rig

LR 85-14 - Formula for Equipment Used in Interstate Commerce

LR 85-18 - Agricultural Production [Irrigation Systems]

LR 85-19 - Repair of Electric Motors for Industrial Processors

LR 86-11 - Telephone Transmission Service

LR 86-17 - Sales of Graphic Artwork and Printing

LR 86-24 - Retail Sale Warranties

LR 87-3 - Definition of Nexus

LR 87-4 - Outpatient Clinics

LR 87-5 - Contractor for Hospital

LR 87-6 - Automotive Service Company

LR 87-9 - Manufacturer/Contractor

LR 87-10 - Purchases and Sales by Convenience Stores Company

LR 87-12 - Sales Tax Applicable to Fund-Raisers

LR 87-14 - Sales of Pacemakers, Implantable and External Neurological Devices Implantable Heart Valves and Drug Administration Devices

LR 87-18 - Water and Air Pollution

LR 87-28 - Exemption Certificates

LR 87-30 - Conversion of Industrial Processing Equipment to Taxable Use

LR 87-33 - Purchase of fuel and Energy by Industrial Processors

LR 87-40 - Schools [Sales by School Clubs]

LR 87-41 - Schools and Booster Clubs.

LR 87-48 - Bakery Products.

LR 87-50 - Foam Insulation Manufacturer-Contractor.

LR 87-55 - Insurance Company Payments for Damaged or Stolen Automobiles; Subsequent Sale of Replacement and Recovered Stolen Vehicles

LR 87-58 - Contractors/Waste Water Treatment Plant Constructed for a City

LR 87-59 - Medical Equipment and Appliances

LR 87-61 - Scraper Blades

LR 87-62 - Sale and Lease back of Ore Carrier Vessel

LR 87-64 - Advertising Agency

LR 88-5 - Qualified Exemption--Nonprofit Entity

LR 88-6 - Prepaid or Pre-Need Funeral Arrangements

LR 88-12 - Canned vs. Customized Software

LR 88-15 - Federally Documented Watercraft

LR 88-19 - Intrastate Telecommunication Charges

LR 88-31 - Interstate Telecommunications

LR 88-41 - Charter Air Service

LR 88-51 - Lease Buyout of Vehicle

LR 88-52 - Post Production Material Handling

LR 88-55 - Construction of church Building

LR 89-7 - Engineering and Design for Industrial Processing

LR 89-14 - Churches--Retail Sales

LR 89-20 - Building Contractors--Federal Credit Unions

LR 89-22 - Sales Tax Refund on Vehicles Returned to the Manufacturer as a Result of the Lemon Law

LR 89-42 - Advertising Agencies

LR 89-43 - Sales of Oxygen and Related Dispensing Units

LR 89-54 - Resale Certificates

LR 89-65 - Industrial Processing--Returnable Milk Cases

LR 89-67 - Stud Farms

LR 89-68 - Book Sales--Book Fairs

LR 89-69 - Environmental Protection Fee - Fee Base

LR 89-70 - Industrial Processor - Reconditioner

LR 90-14 - Tax Liability of Interstate Commerce Carriers

LR 90-17 - Direct Marketing/Advertising Agencies

LR 90-19 - Taxability of Insulin and Diabetic Supplies

LR 90-25 - Use Tax base for Manufacturer/Lessor/Consumer

LR 90-26 - Livestock Sales Not Exempt as Food for Human Consumption

LR 90-28 - Grain Drying Equipment

Withdrawn Single Business Tax Letter Rulings

[Single Business Tax Act, 1975 PA 228]

LR 76-17 - Short Period Accounting Method

LR 76-18 - Rental Investments

LR 76-19 - Net Operating Capital Losses

LR 76-22 - Estates--Rental Income - Business Activity.

LR 76-25 - Installment Sales

LR 76-28 - Alarm Systems

LR 76-29 - Minimum Tax = Transportation Services

LR 76-34 - Billings and Collections by Parent Do Not Create Nexus for Subsidiaries

LR 76-39 - Income Tax Credit for Single Business Tax Paid by Partnerships and S Corporations

LR 76-40 - Transportation Service, Minimum Tax, Fiscal Year Taxpayer

LR 77-11 - Credit for Single Business Tax - "Net Business Income" Defined

LR 77-14 - Net Operating Losses

LR 78-14 - Controlled Groups--Statutory Exemption

LR 78-17 – Royalties - Sand and Gravel

LR 88-106 - Apportionment - Sales Factor

LR 89-11 - Tax Exempt Status of Income from United States Obligation

LR 89-34 - Floor Plan Interest

LR 89-40 - Non-Exempt Farm Cooperative Organizations

LR 89-55           Oil and Gas Royalties

LR 89-57 - Exempt Farm Cooperative Corporations

Withdrawn Individual Income Tax Letter Rulings

[Income Tax Act, 1967 PA 281]

LR 87-75 - Subtraction for Pension Benefits Received from Service with the United States Public Health Service

LR 88-37 - Taxability of Income Earned by a Minor Claimed as a Dependent by Another Person

LR 89-6 - Homestead Property Tax Credit - Leased Farmland

LR 89-45 - Computation of Lien Upon Release of Farmland Development Agreement or Easement When Owner Dies or Is Totally and Permanently Disabled

LR 89-51 - Supplemental Medicare Premiums are Deductible

LR 89-56 - Computation of Lien Imposed Upon a Natural Termination of One of the Farmland Developments Rights Agreements Owed by a Taxpayer

LR 89-62 - Computation of Lien Imposed Upon Partial Release From a Farmland Development Rights Agreement

Withdrawn Motor Fuel and Motor Carrier Tax Letter Rulings

[Motor Fuel Tax Act, 1927 PA 150 and Motor Carrier Tax Act, 1980 PA 119]

LR 65-1 - Liability for Tax When Discrepancies Exist Between Terminal Out Flow and Delivery

LR 73-1 - Use of Gasoline in Buses Owned by Non-Profit Organizations

LR 76-1 - Taxable Status of Diesel Fuel Used in Vehicles Maintaining or Repairing Highways

LR 77-1 - Taxable Status of Fuel Used by Indians and Indian Reservations

LR 78-1 - Use of Affidavit to Replace Original Invoice Requirement to Obtain Refunds of the Gasoline Tax

LR 82-1 - When Tax Liability is Incurred

LR 83-1 - Taxable Status of Diesel Fuel Used by Foreign Buses

LR 83-2 - Eligibility and Time Span for Obtaining Refund

LR 83-3 - Taxability of Highway/Non-Highway Liquefied Petroleum Gasoline

LR 84-1 - Refunds to Private For-Profit Operators Providing County-Wide Public Transportation

LR 84-3 - Obtaining of Credit for Tax Paid Purchases by Government Agencies

LR 85-1 - Taxable Status of Fuel Used by Buses

LR 85-3 - Qualification for Aviation Refund

LR 85-4 - Commingled Gasoline Storage and Reporting Procedures

LR 87-1 - Use of Automatically Produced Invoices to Support Refund Claim

LR 87-2 - Taxable Status of Aviation Fuel Used by Government Agencies

LR 88-45 - Taxability of Non-Highway Use of Diesel Motor Fuel

LR 88-56 - Identification on Licensed Wholesale Distributor's Trucks Transporting Gasoline in Michigan

LR 90-12 - Exempt Gasoline for Auto Manufacturers

LR 91-1 - Reporting Computer-Generated Mileage Figures on the Motor Carrier Diesel Fuel Tax Report

LR 94-3 - Michigan Motor Carrier Fuel Tax Requirements for Canadian Farm Plated Commercial Motor Vehicles

Withdrawn Severance Tax Letter Rulings

[Severance Tax Act, 1929 PA 48]

LR 81-12 - Taxability of Production/Government Institution--Producer/Royalty Owner

LR 87-80 - Tax Rate on Condensate from Stripper and Marginal Properties

LR 88-60 - Land Fill Methane Gas: Taxable Under the Michigan Severance Tax Act

LR 88-61 - Liability for Severance Tax, Transportation Pipeline

LR 89-29 - Land Fill Methane Gas: Non-Taxable Under the Michigan Severance Tax Act

LR 89-44 - Marketing Cost Deduction for Return on Investment

Withdrawn Estate Tax Letter Ruling

[Michigan Estate Tax Act, 1993 PA 54]

LR 95-2 - Time for Payment of Michigan Estate Tax