State Tax Chart Results

Transcription

1 Tax Chart Results Tax Type: Sales/Use Advertising Services This chart shows whether or not the state taxes advertising services. Advertising MI Not taxable When an advertising agency goes beyond the rendering of services and engages in the business of selling tangible personal property, it must be licensed and remit tax. Materials and supplies bought by the agency and consumed in its operations are taxable unless they become component parts of exempt newspapers and periodicals. Armored Car Services ; Mich. Admin. Code R This chart shows whether or not the state taxes armored car services. 21,420 Armored Car MI Not taxable N/A Babysitting or Daycare Services 22,145 This chart shows whether or not the state taxes babysitting or daycare services. Babysitting or Daycare MI Not taxable N/A Barber/Beauty Shop Services 22,100 This chart shows whether or not the state taxes the services rendered by barber and beauty shops.

2 Barber/Beauty Shops MI Not taxable N/A Bookkeeping Services This chart shows whether or not the state taxes bookkeeping services. 22,100 Bookkeeping bookkeeping services are not listed as a taxable service Building Maintenance Services This chart shows whether or not the state taxes building maintenance services. Building Maintenance building maintenance services are not listed as a taxable service Butchering/Meat Cutting Services This chart shows whether or not the state taxes butchering/meat cutting services. Butchering/Meat Cutting butchering/meat cutting services are not listed as a taxable service Cable/Satellite TV Services This chart shows whether or not the state taxes cable/satellite tv services.

3 Cable/Satellite TV MI Not taxable Charges for nontaxable telecommunications services that are aggregated with (i.e., bundled with) and not separately stated from charges for taxable telecommunications services are taxable unless the service provider can reasonably identify charges for exempt telecommunications services from its books and records kept in the regular course of business. The exemption for sales of property used in the origination or integration of the various sources of program material, commercial radio, or TV transmission, to persons licensed to operate commercial radio or TV stations does not apply to cable TV companies. Car Detailing Services This chart shows whether or not the state taxes car detailing services. 21,900; 1056MI:1000 Car Detailing MI Not Taxable N/A Car Washing Services This chart shows whether or not the state taxes car washing services. 22,020 Car Washing MI Not Taxable N/A Catering Services This chart shows whether or not the state taxes catering services. 22,020

4 Catering MI Not taxable Sales of prepared food and drink by a caterer are taxable. Cell Phone Services This chart shows whether or not the state taxes cell phone services. 21,660 Cell Phone MI Taxable Intrastate and interstate mobile telecommunications services (such as cell phones) are subject to use tax in the same manner as other telecommunications services, as long as the customer's principal place of use is in Michigan. Intrastate telephone service is taxable. Interstate telephone communications that either originate or terminate in Michigan and are charged to a service address in Michigan or phone number by the provider either within or outside Michigan including calls between Michigan and any place within or without the United s outside of Michigan are taxable in Michigan. Mobile telecommunications service provided to customers with a principal place of use outside Michigan are not taxable in Michigan, even if the service takes place in the state. Special rules for bundled services. Computer Services (1)(a) ; (1)(c) ; Ann b(1) 21,900; 1056MI:1000

5 This chart shows whether or not the state taxes computer services. Computer MI Not taxable Exempt are specific charges for technical support or for adapting or modifying prewritten computer software programs to a purchaser's needs or equipment if those charges are separately stated and identified. Copying Services Ann d(f) ; Ann a(c) ; Ann d(q) ; Ann a(d) ; This chart shows whether or not the state taxes copying services. 21,540; 1051MI:1000 Copying copying services are not listed as a taxable service Credit and Collection Services This chart shows whether or not the state taxes credit and collection services. Credit and Collection credit and collection services are not listed as a taxable service Credit Reporting Services This chart shows whether or not the state imposes a tax on sales of credit reporting services. Credit Reporting Services MI Not Taxable N/A Dance Instruction Services This chart shows whether or not the state taxes dance instruction services. 22,040

6 Dance Instruction dance instruction services are not listed as a taxable service Data Processing Services This chart shows whether or not the state taxes data processing services. Data Processing MI Not taxable N/A Dating Services This chart shows whether or not the state taxes dating services. 21,540; 1051MI:1000 Dating MI Not taxable N/A Debt Counseling Services This chart shows whether or not the state taxes debt counseling services. 22,100 Debt Counseling MI Not taxable N/A Defense/Military Contractor Services Does the state tax defense or military contractor services? 22,100

7 Defense/Military Contractor Services MI No Sales to the United s government, the of Michigan and its political subdivisions, departments and institutions are not taxable if such sales are ordered on the prescribed respective government form or purchase order and are paid for directly to the seller by warrant on government funds. When such sales are made without the required purchase order form being supplied in advance, the sale is taxable but the licensee may later take credit for the tax payment upon his or her subsequent receipt of purchase order and warrant covering such sales. Delivery Services Mich. Admin. Code R205.71(1) ; Mich. Admin. Code R205.71(2) This chart shows whether or not the state taxes delivery services. 21,250 Delivery delivery services are not listed as a taxable service Dry Cleaning Services This chart shows whether or not the state taxes dry cleaning services. Dry Cleaning MI Not Taxable N/A ; Mich. Admin. Code R ,020

8 Employment/Help Supply Services This chart shows whether or not the state taxes employment or help supply services. Employment/Help Supply employment or help supply services are not listed as a taxable service Engraving Services This chart shows whether or not the state taxes engraving services. Engraving MI Not Taxable N/A Escort Services This chart shows whether or not the state taxes escort services. 21,860 Escort MI Not taxable N/A Excavating and Grading Services 22,100 This chart shows whether or not the state taxes excavating and grading services. Excavating and Grading MI Not taxable N/A ; Mich. Comp. Laws Ann (g) Fabrication Services This chart shows whether or not the state taxes fabrication services. 21,580 Fabrication MI Not taxable N/A Fishing/Hunting Guide Services 21,740 This chart shows whether or not the state taxes fishing/hunting guide services.

9 Fishing/Hunting Guide fishing/hunting guide services are not listed as a taxable service Flying Instructions Services This chart shows whether or not the state taxes flying instructions services. Flying Instructions flying instruction services are not listed as a taxable service Fur Storage or Repair Services This chart shows whether or not the state taxes fur storage or repair services. Fur Storage or Repair MI Not Taxable Repair services exempt if separately itemized. Furniture Moving Services This chart shows whether or not the state taxes furniture moving services. Furniture Moving MI Not Taxable If labor charge is separately itemized Garment Alteration/Repair Services This chart shows whether or not the state taxes garment alteration/repair services. Garment Alteration/Repair MI Not Taxable Repair/alteration services exempt if separately itemized Heating, Ventilating and Air Conditioning Installation/Repair Services This chart shows whether or not the state taxes heating, ventilating and air conditioning

10 installation or repair services. HVAC Installation/Repair MI Not Taxable When both labor and service charges are involved in maintenance and repair work for others, the retailer must separately itemize the amount charged for tangible personal property sold, otherwise the entire charge is taxable. Home Health Care Services Ann (1)(d)(iii)(B) ; Ann (f)(iii)(B) This chart shows whether or not the state taxes home health care services. 22,140; 1058MI:1000 Home Health Care MI Not taxable N/A Information Services This chart shows whether or not the state taxes information services. 22,100 Information MI Not taxable If separately billed or stated Interior Design Services Michigan Letter Ruling No. 93-1,, 07/09/1993 This chart shows whether or not the state taxes interior design services. 22,040; 1055MI:1000 Interior Design interior design services are not listed as a taxable service Internet Access Services Internet Access MI Exempt N/A Ann (1)(x) 22,060

11 Investment Counseling Services This chart shows whether or not the state taxes investment counseling services. Investment Counseling MI Not taxable N/A Janitorial Services--Taxable or Exempt 21,640 Janitorial Services MI Exempt N/A Ann (1) Kenneling Services This chart shows whether or not the state taxes kenneling services. 22,020 Kenneling MI Not taxable N/A Mich. Admin. Code R Lawn Care Services This chart shows whether or not the state taxes lawn care services. 21,970 Lawn Care MI Not Taxable If labor charge is separately itemized. Limousine Services This chart shows whether or not the state taxes limousine services. Limousine MI Not taxable N/A Linen Services This chart shows whether or not the state taxes linen services. 21,490

12 Linen MI Not Taxable Persons in the business of laundering clothes and other textiles for others, and persons operating a linen service or providing the use of clean garments, towels, and so on, to establishments, are rendering a service. The laundering and cleaning of textiles under a sale, rental or service agreement with a 5-day or more term is taxable with the exception of textiles used by a restaurant or retail sales business. Lobbying Services (1)(d) ; Mich. Admin. Code R This chart shows whether or not the state taxes lobbying services. 22,020 Lobbying lobbying services are not listed as a taxable service Mailing Services This chart shows whether or not the state taxes mailing services. Mailing mailing services are not listed as a taxable service Management Consulting Services This chart shows whether or not the state taxes management consulting services.

13 Management Consulting MI Not taxable N/A Marina Rental/Boat Docking Services 22,120 This chart shows whether or not the state taxes marina rental/boat docking services. Marina Rental/Boat Docking MI Not taxable N/A Marketing Research Services 21,990 This chart shows whether or not the state taxes marketing research services. Marketing Research MI Not taxable If a taxpayer creates and maintains data bases of prime prospects of client products and develops and executes marketing and promotional customized programs, providing mailing lists, statistics and other information in the form of tangible personal property to its customers, then the taxpayer is making retail sales and is taxable. Massage Therapy Services Michigan Letter Ruling No ,, 08/01/1988 This chart shows whether or not the state taxes massage therapy services. 22,120 Massage Therapy MI Not taxable N/A Motor Vehicle Parking Services 22,100 This chart shows whether or not the state taxes motor vehicle parking services.

14 Motor Vehicle Parking MI Not Taxable Separate excise tax is imposed on persons providing an airport parking facility. Motor Vehicle Towing Services This chart shows whether or not the state taxes motor vehicle towing services. Motor Vehicle Towing motor vehicle towing services are not listed as a taxable service Payroll Services This chart shows whether or not the state taxes payroll services. Payroll payroll services are not listed as a taxable service Pest Control/Extermination Services This chart shows whether or not the state taxes pest control/extermination services. Pest Control/Extermination pest control/extermination services are not listed as a taxable service Pet Grooming Services This chart shows whether or not the state taxes pet grooming services.

15 Pet Grooming MI Not taxable N/A Photography Services This chart shows whether or not the state taxes photography services. 21,970 Photography MI Taxable The total amount charged for making photographs, including the camera charge, is taxable. When an order is not received from proofs, the amount of the deposit retained is not taxable. Pool Cleaning Services Mich. Admin. Code R (2) This chart shows whether or not the state taxes pool cleaning services. 21,840 Pool Cleaning MI Not Taxable N/A Prepaid Telephone Calling Services 22,020 This chart shows whether or not the state taxes prepaid telephone calling services. Prepaid Telephone Calling MI Taxable Sales of prepaid telephone calling cards or prepaid authorization numbers (including recharges or reauthorizations) are taxable on the entire charge. Use tax does not apply to the telecommunications service associated with the card or number. Prime Contractor Ann (2)(b) ; Ann b(1) ; Ann (1)(x) 21,900; 1056MI:1000 This chart shows whether or not general or prime contracting services is subject to the state sales tax.

16 Prime Contractor MI Not taxable N/A N/A 21,580 Printing Services This chart shows whether or not the state taxes printing services. Printing MI Taxable Sales of tangible personal property by printers are taxable except when the sales are for resale. No deduction is allowed for a labor or service charge even if billed separately. Printing on a customer's stock is a nontaxable service. Private Investigation Services Mich. Admin. Code R ; 21,860 This chart shows whether or not the state taxes private investigation services. Private Investigation MI Not taxable N/A Public Relations Services This chart shows whether or not the state taxes public relations services. 22,145 Public Relations MI Not taxable N/A Repair Services--Charges for Labor Repair Services--Charges for Labor MI Not taxable Retailer must separately itemize the amount charged for tangible personal property sold, otherwise the entire charge is taxable. Repair Services--Charges for Materials/Supplies 21,420 Comment Authority Editorial Reference Ann (1)(d)(iii)(B) ; Ann (f)(iii)(B) 22,140; 1058MI:1000

17 Assuming that a repairman provides materials or supplies in connection with the repair of tangible personal property for a customer, are the charges for the materials and supplies taxable? Repair Services--Charges for Materials/Supplies MI Taxable When both labor and service charges are involved in maintenance and repair work for others, the retailer must separately itemize the amount charged for tangible personal property sold, otherwise the entire charge is taxable. Repair Services--Labor Charges Separately d Mich. Admin. Code R (3) 22,140; 1058MI:1000 Assuming that labor charges for repairs are exempt, does the state require that such charges be separately stated or invoiced? Repair Services--Labor Charges Separately d MI Yes When both labor and service charges are involved in maintenance and repair work for others, the retailer must separately itemize the amount charged for tangible personal property sold, otherwise the entire charge is taxable. Research & Development Services Ann (1)(d)(iii)(B) ; Ann (f)(iii)(B) ; Mich. Admin. Code R (1) 22,140; 1058MI:1000 This chart shows whether or not the state taxes research & development services. Research & Development MI Not taxable N/A 21,880

18 Safe Deposit Box Services This chart shows whether or not the state taxes safe deposit box services. Safe Deposit Box safe deposit box services are not listed as a taxable service Sales Agents/Dealers/Brokers Services This chart shows whether or not the state taxes services rendered by sales agents, dealers, or brokers. Sales Agents/Dealers/Brokers services rendered by agents, dealers, or brokers are not listed as a taxable service Security Services This chart shows whether or not the state taxes security services. Security MI Not taxable N/A Self-Storage Services This chart shows whether or not the state taxes self-storage services. 22,145 Self-Storage self-storage services are not listed as a taxable service Sign Painting/Lettering Services This chart shows whether or not the state taxes sign painting/lettering services.

19 Sign Painting/Lettering MI Not Taxable If working on the property of others. If painter/letter also makes retail sales of manufactured signs, tax applies on the full selling price without deduction for any costs incurred in producing the sign Snow Removal Services Mich. Admin. Code R This chart shows whether or not the state taxes snow removal services. 22,140 Snow Removal snow removal services are not listed as a taxable service Software as a Service (SaaS) This chart shows whether or not the state imposes a tax on the sales of Software as a Service (SaaS). For purposes of this chart, SaaS is a cloud computing model in which general or specialized software applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. The customer generally does not manage or control the software or the underlying cloud infrastructure.

20 Software as a Service (SaaS) MI Taxable A Michigan Department of Treasury release states a computer program transferred or downloaded electronically by a network, intranet, the Internet, or by any other electronic method is taxable if the software being transferred meets the definition of canned software. However, a Michigan trial court has held that cloud computing services are not subject to the state's use tax (Auto-Owners Insurance Company v. Department of Treasury, Mich. Ct. Claims, Dkt. No MT, 03/20/2014.) Also, in an unpublished decision, the Michigan Court of Appeals held that the sale of a taxpayer's online tax and accounting research program, which provides subscribers access to a wide collection of information, was not subject to use tax because any transfer of tangible personal property was incidental to the service provided (Thomson Reuters Inc. v. Department of Treasury, Mich. Ct. App., Dkt. No , 05/13/2014 (unpublished)). A Michigan trial court has also held that a taxpayer was not subject to use tax on Michigan Revenue Administrative Bulletin No ,, 09/28/ ,540

21 Stenographic Services its use of an online information database (Rehmann Robson & Co., P.C. v. Department of Treasury, Mich. Ct. Claims, Dkt. No MT, 11/26/2014.) This chart shows whether or not the state taxes stenographic services. Stenographic stenographic services are not listed as a taxable service Tanning Salon Services This chart shows whether or not the state taxes tanning salon services. Tanning Salon MI Not taxable N/A Tattoo Parlor Services This chart shows whether or not the state taxes tattoo parlor services. 22,100 Tattoo Parlor MI Not taxable N/A Taxidermist Services This chart shows whether or not the state taxes taxidermist services. 22,100 Taxidermist MI Taxable Services are exempt taxidermist services are not listed as a taxable service Telecommunications Services--"900" number Department Treasury This chart shows the state's tax treatment of charges paid by consumers who use a 900

22 service also known as "pay-per-call" service. "900" type phone services MI Taxable N/A (1)(a) ; (1)(c) Telecommunications Services--Interstate 21,900; 1056MI:1000 This chart shows whether or not the state taxes interstate telecommunications services. Interstate telecommunications services MI Taxable N/A (1)(c) Telecommunications Services--Intrastate 21,900; 1056MI:1000 This chart shows whether or not the state taxes intrastate telecommunications services. Intrastate telecommunications services MI Taxable N/A (1)(a) Telephone Answering/Paging Services 21,900; 1056MI:1000 This chart shows whether or not the state taxes telephone answering/paging services. Telephone Answering/Paging MI Exempt Answering services are not considered taxable telecommunications services if the primary purpose of the transaction is the answering service rather than message transmission. Voice mail service is taxable. Effective retroactive to 1/1/2006, paging services are taxable. Tire Recapping Services (1)(a) ; (5)(a) ; Ann b(9)(m)(ix) This chart shows whether or not the state taxes tire recapping services. 21,900; 1056MI:1000

23 Tire Recapping MI Taxable If tires are supplied by a customer for retreading or vulcanizing, the sales tax applies to the selling price of the materials sold. Labor charges billed separately to the customer are not taxable. Title Search Services Mich. Admin. Code R This chart shows whether or not the state taxes title search services. 22,140 Title Search MI Not taxable N/A Transportation Services 22,040 This chart shows whether or not the state taxes interstate transportation services. Transportation MI Not taxable N/A Trash/Garbage Removal Services 21,490 This chart shows whether or not the state taxes trash/garbage removal services. Trash/Garbage Removal MI Not Taxable N/A Travel Agency Services 22,020 This chart shows whether or not the state taxes the services rendered by a travel agency. Travel Agency services rendered by a travel agency are not listed as a taxable service

24 Tree Care/Trimming/Cutting Services This chart shows whether or not the state taxes tree care, tree trimming, or tree cutting services. Tree Care/Trimming/Cutting tree care, tree trimming, or tree cutting services are not listed as a taxable service Veterinary Services This chart shows whether or not the state taxes services rendered by veterinarians. Veterinary MI Not taxable N/A Mich. Admin. Code R (1) Warehousing Services This chart shows whether or not the state taxes warehousing services. 21,970 Warehousing warehousing services are not listed as a taxable service Water Conditioning/Softening Services This chart shows whether or not the state taxes water conditioning or water softening services. Water Conditioning/Softening water conditioning services are not listed as a taxable service Window Cleaning Services

25 This chart shows whether or not the state taxes window cleaning services. Window Cleaning MI Not Taxable N/A 22,020 Last run 10/26/ Thomson Reuters/Tax & Accounting. All Rights Reserved.