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Expanding the Michigan Sales Tax Exemption for Implants: What You Need to Know

  • The Michigan sales tax exemption for implants was expanded with the signing of Public Act #46.
  • The law modified the definition of prosthetic devices that qualify for exemption when purchased by hospitals or freestanding surgical outpatient facilities.
  • Prior to the law change, the exemption was limited to prosthetic devices that were “resold” to patients.
  • The law change eliminated the dispensed pursuant to a prescription requirement.
  • Hospitals and outpatient facilities now only need to prove that the implantable prosthetic device meets the definitional criteria of a prosthetic device.
  • Examples of implantable prosthetic devices that qualify for exemption include artificial knees, hips, shoulders, pacemakers, intra-ocular lenses, and stents.
  • The exemption for prosthetic devices that are temporarily inserted or attached to the body is currently ambiguous.
  • Hospitals and outpatient facilities can request a refund for qualifying purchases made under the exemption.
  • Michigan Department of Treasury Form 5633 is used to request the refund.
  • The consultants at Agile Consulting Group can assist with the refund process.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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