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Michigan Reminds Shoppers of Use Tax Obligations


Joining a growing list of states eager to collect use tax on out-of-state purchases, the Michigan Department of Treasury has issued an information notice reminding cyber shoppers to "keep receipts and report use tax." The notice was released just in time for the holiday shopping period.

Michigan residents are reminded that "purchases made on-line are not tax-free during holiday season, or at any other time of the year."

Shopping through online and mail-order companies or television shopping networks that do not have nexus in Michigan (or a physical presence in the state) is not tax free shopping in Michigan. Residents are required to pay the state use tax rate of 6% on a wide variety of purchases, including but not limited to:

  • "appliances,
  • books,
  • clothing,
  • computers,
  • DVDs/CDs,
  • electronics,
  • furniture,
  • and pre-written software."

Michigan is a full member of the Streamlined Sales and Use Tax Agreement, which simplifies and modernizes sales and use tax administration.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.