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Comprehensive Guide to Michigan Sales Tax: Rates, Nexus, Exemptions, and Compliance Essentials

  • Michigan has a statewide sales and use tax rate of 6 percent with no additional local sales taxes.
  • Michigan is part of the Streamlined Sales Tax initiative to simplify sales tax rules.
  • Taxable items include tangible personal property and certain services like clothing, software, and telecommunication services.
  • Sales tax nexus is established through physical or economic presence in Michigan.
  • Economic nexus applies if a business has over 100,000 dollars in sales or more than 200 transactions in Michigan.
  • Businesses must register to collect sales tax via Michigan Treasury Online.
  • Exemptions include most services, food, agricultural items, medical equipment, and digital goods.
  • Certain entities like nonprofits, churches, and schools are exempt from sales tax.
  • Exemption claims require an exemption certificate, commonly Form 3372.
  • Filing and remittance can be done through Michigan Treasury Online or Simplified Electronic Return.

Source: sovos.com

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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