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State and Local Tax

Michigan Revises Sales and Use Administrative Rules

· 5 minute read

· 5 minute read

by Peter G. Pupke

The Michigan Department of Treasury has adopted a general revision of its sales and use administrative rules, which were last generally revised in 2013. The amendments adopted revise, update, rename, rescind, and create certain sales and use tax administrative rules (R205.1 through R205.142), effective August 11, 2023, to update and modernize the sales and use tax rules to make them consistent with current law.

Amended rules.

The following administrative rules have been amended:

  • R205.1, sales tax licenses.
  • R205.13, casual or isolated sales.
  • R205.15, trade-in deduction and core charges.
  • R205.16, returned goods.
  • R205.20, interpretation of rules.
  • R205.22, discounts, coupons, and rebates generally, discounts on certain motor vehicle sales.
  • R205.26, use tax registration.
  • R205.54, automobile and other vehicle sales.
  • R205.55, sale of automotive parts.
  • R205.62, aircraft.
  • R205.67, fuel dealers.
  • R205.68, containers, cartons, and wrapping materials.
  • R205.70, consignments.
  • R205.71, contractors.
  • R205.76, employee sales and employer-sponsored incentive programs.
  • R205.77, fairs, circuses, carnivals, and other public exhibitions.
  • R205.79, federal and state governments.
  • R205.80, florists and nurserymen.
  • R205.88, lodging provided by hotels, motels, cabins, and camps.
  • R205.93, sales and breeding of animals (previously titled “kennels, stables, and pet shops”).
  • R205.94, labels, tags, and other property included in or affixed to containers (previously titled “labels, tags, and nameplates”).
  • R205.98, sales made in transit (previously titled “meals”).
  • R205.104, optometrists, ophthalmologists, opticians, and optical supply houses.
  • R205.108, postage stamps (previously titled “philatelists, antiques, curios, and old coins”).
  • R205.109, photographers and photo processors.
  • R205.111, physicians, surgeons, dentists, veterinarians, osteopaths, and other health care professionals.
  • R205.112, returns and gifts.
  • R205.132, lease or rental.
  • R205.137, air and water pollution control facility.

New rules.

The Department has adopted the following new administrative rules: R205.29, relating to the exemption for use tax already paid on tangible personal property or services; and R205.142, relating to the exemption for diesel fuel used in certain vehicles operated for hire.

Rescinded rules.

The Department has rescinded the following administrative rules: R205.8 (consumer use, conversion), R205.52 (antiques, works of art, and artists), R205.56 (bakeries), R205.57 (barber and beauty shops), R205.58 (beer, wine and liquors), R205.60 (bookbinders and paper cutters), R205.63 (cemeteries and crematories), R205.64 (chemicals), R205.66 (clipping bureaus), R205.72 (milk and dairy products), R205.73 (directories), R205.75 (employee associations and organization), R205.78 (farmers, market masters, and other marketers), R205.81 (foreign commerce), R205.83 (gasoline stations and other motor fuel retailers), R205.84 (golf and country clubs), R205.89 (ice producing), R205.90 (industrial processing), R205.91 (interstate commerce), R205.92 (jewelers and jewelry repairers), R205.97 (linen and laundry suppliers and laundries), R 205.99 (mining, oil wells, and extractive operations), R205.100 (tombstones, markers, and other memorials), R205.101 (morticians, undertakers, and funeral directors), R205.102 (multigraphers and mimeographers), R205.106 (pawnbrokers), R205.107 (pharmacists), R205.110 (telephone and telegraph), R205.113 (printers, lithographers, photostaters, typographers, and blueprinters), R205.114 (professional shoppers), R205.115 (public utilities, gas, electricity, and steam), R205.116 (restaurants, hotels, lunchrooms, and other establishments), R205.117 (repairers and servicers), R205.118 (shoe repairers), R205.119 (sign painting), R205.124 (transportation charges), R205.126 (vending machines and other automatic sales devices), R205.130 (tire retreading and vulcanizing), R205.131 (vessels and watercraft), R205.133 (advertising agencies), R205.134 (radio and television stations), R205.135 (isolated vehicle, aircraft, watercraft, and snowmobile transfers), and R205.139 (medical equipment and appliances).


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