Sales and Use Taxes Update and Education Opportunities

Michigan Department of Treasury sent this bulletin at 04/26/2023 05:56 PM EDT

 

Treasury 

Tax Rate Change: Delivery and Installation Charges

On April 26, 2023, Governor Gretchen Whitmer signed Public Acts 20 and 21 of 2023 into law. This action amended both the General Sales Tax Act and the Use Tax Act making most delivery and installation charges tax exempt in Michigan.

The two exceptions to this law change are:

  • delivery or installation charges associated with the sale of electricity, natural gas, or artificial gas by a utility, AND
  • taxpayers who do not separately itemize delivery or installation charges on customer invoices and who do not also maintain consistent books and records that show how tangible items and delivery/installation fees were determined and how sales tax was applied to their transactions.

Because the Public Acts were passed with immediate effect and provide retroactive relief, sellers and purchasers may have questions about tax collection, refunds, and unpaid balances related to delivery and installation charges. 

Need more support? Join us for free, public education!

Tax and Audit Webinar Series

This virtual event covers the entire process for sales and use taxes in Michigan – laws, resources, collecting tax, filing and payment rules, verifying tax obligations through the audit process, exploring communication and information channels via Treasury's web service portals, and a Michigan Treasury Online (MTO) live demonstration. Explore each topic during 90-minute live webinars. After each session's scheduled time, subject matter experts will answer attendee-submitted questions live for up to 1 hour. Additional details are available on the registration pages; sign up for as many sessions as you need.

Sales and Use (SU) Tax Basics Monday, May 15, 2023     1:00 p.m. EDT Register
Nexus, Remote Sellers,
Marketplace Facilitators		 Tuesday, May 16, 2023     1:00 p.m. EDT Register
Ins and Outs of SU Tax Returns Tuesday, May 23, 2023     1:00 p.m. EDT Register
SU Filing and Payment Rules Wednesday, May 24, 2023     1:00 p.m. EDT Register
The Audit Process Thursday, May 25, 2023     1:00 p.m. EDT Register
Treasury Web Services for SU Taxes Wednesday, May 31, 2023     1:00 p.m. EDT Register
MTO Live Demonstration Thursday, June 1, 2023     1:00 p.m. EDT Register


If you are interested in attending an education event, registration is required. 
Treasury Outreach webinar registration ends the day before each seminar at 5:00 p.m. EDT.

 

Updated web resources:

  • Public Acts 20 and 21 of 2023: links to bills, legislative analyses, and the Acts signed into law.
  • Notice: a policy publication regarding changes in the taxability of delivery and installation charges for sales and use taxes.
  • Delivery and Installation Charges: a refreshed, plain-language Treasury webpage dedicated to this law change with practical guidance for retailers, sellers, and consumers.

 

About Treasury Outreach…

Treasury's free educational seminars provide an opportunity to learn about important tax processing and compliance topics, Treasury updates, and other government information important to our stakeholder communities. Our ongoing goal through this outreach program is to enhance communication, foster a culture of taxpayer service, and identify continuous improvement projects through your feedback. Learn more at michigan.gov/treasuryoutreach. 

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