Does Michigan Have a Tax on Food?

Michigan Tax Laws Overview

  • Michigan does not tax digital goods.
  • The state sales tax rate is 6% statewide.
  • You must pay 6% use tax to Michigan on out-of-state purchases not charged sales tax.
  • Compliance with the tax laws is reported to be low.

Sales Tax Regulations for Online Retailers

  • Large online retailers in Michigan must now collect and remit the 6% sales tax.
  • This aims to create a fair, level playing field and could bring in about $60 million annually.
  • Out-of-state online retailers must pay 6% Michigan sales tax on sales made after September 30, 2018.
  • The law now requires the state to collect from out-of-state companies, potentially impacting consumer costs.

Taxation of Software and Use Tax

  • Software is taxable in Michigan.
  • If a business has a physical presence in Michigan, it must collect sales tax; otherwise, no need to collect sales tax.
  • Michigan residents should pay 6% use tax on online, mail order, or out-of-state purchases.

Michigan Use Tax Regulations

  • Items brought into Michigan for storage, use, or consumption may be subject to a 6% Michigan Use tax.
  • Credit is given for any sales or use tax legally due and paid in another state at the time of purchase.

Leave a Comment