Nov. 17, 2017
Contact: Ron Leix, Treasury, 517-335-2167
Schools, Local Police and Fire
Departments Benefit from Use Tax Payments
LANSING, Mich. – Michiganders
purchasing holiday gifts from online retailers can conveniently pay their
outstanding use tax when filing their annual Michigan Individual Income Tax Return,
according to the Michigan Department of Treasury.
Michigan’s use tax
generally applies to purchases made when a retailer does not collect sales tax.
This often happens when individuals purchase items through online or mail-order
retailers or television shopping networks without physical locations inside the
state of Michigan.
“With the kick-off of the
holiday shopping season happening after Thanksgiving Day, be sure to check if you
are being charged sales tax when you purchase items online,” said Deputy State
Treasurer Glenn White, head of Treasury’s Tax Administration Group. “If the
online retailer doesn’t charge sales tax, state law requires you to keep a
running total and pay your outstanding use tax when you file your annual state
income tax return.”
Taxpayers paid millions of dollars
in use tax through their state income tax return this filing year, helping fund
schools and local police and fire departments. Most of the dollars
collected from taxpayers through the use tax go to the School Aid Fund, General
Fund and to the Local Community Stabilization Authority
The use tax is
calculated at the rate of 6 percent of the total purchase. Items subject to use
tax include appliances, books, clothing, computers, DVDs, CDs, electronics,
furniture, pre-written computer software and tobacco products.
Taxpayers can report
their total outstanding use tax annually when filing their Michigan Individual
Income Tax Return between January and April.
To learn more about
the state of Michigan’s use tax and other taxes, go to www.michigan.gov/taxes.
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