10-Nov-2019 9:12pm
https://www.michigan.gov/taxes/0,4676,7-238-43519_43529---,00.html
10-Nov-2019 9:58pm
Retailers making exempt sales shall obtain the following exemption certificate:
(3) Sales and rentals of tools, machinery, and equipment to contractors are taxable.
(4) Where a contractor is exclusively engaged in the contracting business and makes no direct sales to other contractors or consumers, he does not need a sales tax license. Such nonlicensed contractors are required to maintain a use tax registration and pay the use tax to the state on purchases made from out-of-state sellers.
(5) Where a contractor is not engaged exclusively in the contracting business but makes sales of tangible property at retail to other contractors and consumers, he shall secure a sales tax license and file returns to report sales on such transactions. Use tax due on out-of-state purchases and on merchandise acquired for resale and later consumed in contract operations shall be reported on the combined sales and use tax return.
(6) Where a manufacturer affixes his product to real estate for others, he qualifies as a contractor and shall remit use tax on the inventory value of the property at the time the property is converted to the contract which value shall include all costs of manufacturing, fabricating, and processing.
(7) A contractor purchasing tangible personal property for affixation to realty where delivery is taken in Michigan is subject to sales or use tax on the purchase price whether the improvement or construction of realty takes place within or without Michigan, except as noted in subrule (2).
10-Nov-2019 11:05pm
Nilodop wrote:Did he pay sales tax when he bought the materials or did he claim a resale exemption?
11-Nov-2019 8:46am
11-Nov-2019 6:20pm
Terry Oraha wrote:It very well could be that he owes no use tax. This is how the state of Michgian communicates with taxpayers. they just send you an estimate of use tax and wait for you to respond. If he owes no use tax you file (or refile) the sales and Use Tax and Withholding Return Form 5081 with zeros under use tax. They will send you another notice that your client owes nothing.
14-Nov-2019 12:41pm
14-Nov-2019 4:43pm
27-Nov-2019 9:07am