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Michigan: LIEAF Surcharge is Exempt from Sales tax


Michigan offers a Low-Income Energy Assistance Fund (LIEAF), which provides low-income energy assistance funding for electric utility companies. Electric utility companies may opt out of LIEAF, but if they do, they may not shut off services on delinquent residential accounts between November 1 and April 15.

LIEAF is a "'nonbypassable surcharge' on retail billing meters and is payable monthly by every electric utility customer." It will not break the bank, as the maximum monthly surcharge is $1.

The LIEAF surcharge, which must be separately stated on invoices, is not subject to sales tax.

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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.