Revenue Administrative Bulletin 1988-40

Approved: June 10, 1988

SALES TAX - AUTOMOTIVE EMISSIONS TESTING

(Replaces Position Paper SUW 84-007)

RAB-88-40. The cost of automotive emissions testing, when added to the cost of a vehicle offered for sale by a dealer, is subject to sales tax as part of the gross proceeds of that sale.

"Gross proceeds" is defined in Act [167 of the Public Acts of 1933, as amended, (General Sales Tax Act) as being:

"..amount received in money, credits, subsidies, property, or other money's worth in consideration of a sale at retail within this state, without deduction on account of the cost of property sold, the cost of materials used, the cost of labor or service purchased..."