Michigan Compiled Laws
Act 94 of 1937 - Use Tax Act (205.91 - 205.111)
Section 205.92b - Additional Definitions.

Sec. 2b.
As used in this act:
(a) "Alcoholic beverage" means a beverage suitable for human consumption that contains 1/2 of 1% or more of alcohol by volume.
(b) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions.
(c) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.
(d) "Delivered electronically" means delivered from the seller to the purchaser by means other than tangible storage media.
(e) "Delivery charges" means charges by the seller for preparation and delivery to a location designated by the purchaser of tangible personal property or services. Delivery charges include, but are not limited to, transportation, shipping, postage, handling, crating, and packing. Beginning September 1, 2004, delivery charges do not include the charges for delivery of direct mail if the charges are separately stated on an invoice or similar billing document given to the purchaser. If a shipment includes both exempt property and taxable property, the seller shall allocate the delivery charge using 1 of the following methods:
(i) Multiply the delivery price by a fraction, the numerator of which is the total sales prices of the taxable property and the denominator of which is the total sales prices of all property in the shipment.
(ii) Multiply the delivery price by a fraction, the numerator of which is the total weight of the taxable property and the denominator of which is the total weight of all property in the shipment.
(f) "Dental prosthesis" means a bridge, crown, denture, or other similar artificial device used to repair or replace intraoral defects such as missing teeth, missing parts of teeth, and missing soft or hard structures of the jaw or palate.
(g) "Dietary supplement" means any product, other than tobacco, intended to supplement the diet that is all of the following:
(i) Required to be labeled as a dietary supplement identifiable by the "supplement facts" box found on the label as required by 21 CFR 101.36.
(ii) Contains 1 or more of the following dietary ingredients:
(A) A vitamin.
(B) A mineral.
(C) An herb or other botanical.
(D) An amino acid.
(E) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake.
(F) A concentrate, metabolite, constituent, extract, or combination of any ingredient listed in sub-subparagraphs (A) to (E).
(iii) Intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in 1 of those forms, is not represented as conventional food or for use as a sole item of a meal or of the diet.
(h) "Direct mail" means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addresses on a mailing list provided by the purchaser or at the direction of the purchaser if the cost of the items is not billed directly to the recipients, including tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material but not including multiple items of printed material delivered to a single address.
(i) "Drug" means a compound, substance, or preparation, or any component of a compound, substance, or preparation, other than food or food ingredients, dietary supplements, or alcoholic beverages, intended for human use that is 1 or more of the following:
(i) Recognized in the official United States Pharmacopoeia, official homeopathic pharmacopoeia of the United States, or official national formulary, or in any of their supplements.
(ii) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.
(iii) Intended to affect the structure or any function of the body.
(j) "Durable medical equipment" means equipment for home use, other than mobility enhancing equipment, dispensed pursuant to a prescription, including durable medical equipment repair or replacement parts, that does all of the following:
(i) Can withstand repeated use.
(ii) Is primarily and customarily used to serve a medical purpose.
(iii) Is not useful generally to a person in the absence of illness or injury.
(iv) Is not worn in or on the body.
(k) "Durable medical equipment repair or replacement parts" includes all components or attachments used in conjunction with durable medical equipment.
(l) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
(m) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration and may include future options to purchase or extend. This definition applies only to leases and rentals entered into after September 1, 2004 and has no retroactive impact on leases and rentals that existed on that date. Lease or rental does not include the following subparagraphs (i) to (iii) and includes subparagraph (iv):
(i) A transfer of possession or control of tangible personal property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments.
(ii) A transfer of possession or control of tangible personal property under an agreement requiring transfer of title upon completion of the required payments and payment of an option price that does not exceed $100.00 or 1% of the total required payments, whichever is greater.
(iii) The provision of tangible personal property along with an operator for a fixed or indeterminate period of time, if that operator is necessary for the equipment to perform as designed. To be necessary, an operator must do more than maintain, inspect, or set up the tangible personal property.
(iv) An agreement covering motor vehicles or trailers if the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in section 7701(h)(1) of the internal revenue code of 1986, 26 USC 7701(h)(1).
(n) "Mobility enhancing equipment" means equipment, other than durable medical equipment or a motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer, dispensed pursuant to a prescription, including repair or replacement parts for that equipment, that is all of the following:
(i) Primarily and customarily used to provide or increase the ability to move from 1 place to another and is appropriate for use at home or on a motor vehicle.
(ii) Not generally used by a person with normal mobility.
(o) "Prescription" means an order, formula, or recipe, issued in any form of oral, written, electronic, or other means of transmission by a licensed physician or other health professional as defined in section 3501 of the insurance code of 1956, 1956 PA 218, MCL 500.3501. For a hearing aid, prescription includes an order, instruction, or direction of a hearing aid dealer or salesperson licensed under article 13 of the occupational code, 1980 PA 299, MCL 339.1301 to 339.1309.
(p) "Prewritten computer software" means computer software, including prewritten upgrades, that is delivered by any means and that is not designed and developed by the author or other creator to the specifications of a specific purchaser. Prewritten computer software includes all of the following:
(i) Any combination of 2 or more prewritten computer software programs or portions of prewritten computer software programs.
(ii) Computer software designed and developed by the author or other creator to the specifications of a specific purchaser if it is sold to a person other than that specific purchaser.
(iii) The modification or enhancement of prewritten computer software or portions of prewritten computer software if the modification or enhancement is designed and developed to the specifications of a specific purchaser unless there is a reasonable, separately stated charge or an invoice or other statement of the price is given to the purchaser for the modification or enhancement. If a person other than the original author or creator modifies or enhances prewritten computer software, that person is considered to be the author or creator of only that person's modifications or enhancements.
(q) "Prosthetic device" means, except as provided in section 4ff, a replacement, corrective, or supportive device, other than contact lenses and dental prosthesis, dispensed pursuant to a prescription, including repair or replacement parts for that device, worn on or in the body to do 1 or more of the following:
(i) Artificially replace a missing portion of the body.
(ii) Prevent or correct a physical deformity or malfunction of the body.
(iii) Support a weak or deformed portion of the body.
(r) "Tobacco" means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco.
History: Add. 2004, Act 172, Eff. Sept. 1, 2004 ;-- Am. 2006, Act 428, Imd. Eff. Oct. 5, 2006 ;-- Am. 2008, Act 439, Imd. Eff. Jan. 9, 2009 ;-- Am. 2017, Act 220, Imd. Eff. Dec. 20, 2017 ;-- Am. 2020, Act 47, Imd. Eff. Mar. 3, 2020 Compiler's Notes: Enacting section 1 of Act 220 of 2017 provides:"Enacting section 1. This amendatory act is retroactive and is effective beginning July 1, 2017."

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 205 - Taxation

Act 94 of 1937 - Use Tax Act (205.91 - 205.111)

Section 205.91 - Use Tax Act; Short Title.

Section 205.92 - Definitions.

Section 205.92b - Additional Definitions.

Section 205.92c - Definitions.

Section 205.93 - Tax Rate; Applicability to Tangible Personal Property or Services; Conversion to Taxable Use; Penalties and Interest; Presumption; Using, Storing, or Consuming Vehicle, Orv, Manufactured Housing, Aircraft, Snowmobile, or Watercraft;...

Section 205.93a - Tax for Use or Consumption; Services; Charges for Intrastate Telecommunications Services or Telecommunications Services Between State and Another State; Bundled Transaction; Definitions.

Section 205.93b - Tax for Use or Consumption; Mobile Wireless Services; Customer's Place of Primary Use; Record; Reliance Upon Exempt Status for Mobile Wireless Services; Repeal of Section; Condition; Air-Ground Radiotelephone Service; Bundled Transa...

Section 205.93c - Sale of Telecommunications Services; Definitions.

Section 205.93d - Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.

Section 205.93e - Persons Providing Services Subject to Tax; Collection; Refund; Liability for Failure to Collect Tax; Remittance; Certain Collections or Penalties by Department of Treasury Prohibited.

Section 205.93f - Use or Consumption of Medical Services Provided Under Social Welfare Act; Tax; "Medical Services" Defined.

Section 205.94 - Use Tax; Exemptions; Limitation.

Section 205.94a - Additional Exemptions.

Section 205.94b, 205.94c - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94d - Exemptions; Food or Drink From Vending Machines; Definitions.

Section 205.94e - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94f - Computing Monthly Tax Payments; Deductions by Seller Collecting Tax From Purchaser; Disallowance of Deduction; Deduction for Extended Payment Period; Filing Estimated Returns and Annual Periodic Reconciliations; Registration Under S...

Section 205.94g - Exemption of Property Purchased as Part of Purchase or Transfer of Business; Exceptions; Definition.

Section 205.94h - Tax Inapplicable to Property for Use in Qualified Business Activity.

Section 205.94i - Exemption for Drop Shipments; Definition.

Section 205.94j - Exemption of Motor Vehicle Acquired by Towing Company From Police Agency; Definitions.

Section 205.94k - Tax Inapplicable to Parts and Materials Affixed to Certain Aircraft, Sale of Aircraft, Rolling Stock, and Qualified Truck or Trailer; Definitions.

Section 205.94l - Storage, Use, or Consumption of Rail Freight or Passenger Cars, Locomotives or Other Rolling Stock, Roadway Machines and Certain Work Equipment; Applicability of Tax; Exception.

Section 205.94m - Personal Property Affixed to or Made Structural Part of Sanctuary; Applicability of Tax; “Regularly Organized Church or House of Religious Worship” or “Sanctuary” Defined.

Section 205.94n - Electricity, Natural Gas, and Home Heating Fuels for Residential Use; Exemption From Use Tax at Additional Rate.

Section 205.94o - Exemptions; Limitation; Industrial Processing; Definitions.

Section 205.94p - Extractive Operations; Exemption; Limitation; Eligible Property; Definitions.

Section 205.94q - Central Office Equipment or Wireless Equipment; Presumption.

Section 205.94r - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94s - Nonprofit Hospital or Nonprofit Housing; Sale of Personal Property to Person in Business of Constructing, Altering, Repairing, or Improving Real Estate; Tax Exemption; Definitions.

Section 205.94u - Storage, Use, or Consumption of Investment Coins and Bullion; Applicability of Tax; Definitions.

Section 205.94v - Repealed. 2004, Act 172, Eff. Sept. 1, 2004.

Section 205.94w - Applicability of Tax; Exceptions; Definitions.

Section 205.94x - Tax Exemption; Resident Tribal Member.

Section 205.94y - Storage, Use, or Consumption of Automobile Provided by Family Independence Agency or Qualified Organization; Applicability of Tax.

Section 205.94z - Certain Property Affixed to or Made Structural Part of Qualified Convention Facility; "Qualified Convention Facility" Defined.

Section 205.94aa - Storage, Use, or Consumption of Tangible Personal Property for Use as or at Mineral-Producing Property; Exemption; "Mineral-Producing Property" and "Taxpayer" Defined.

Section 205.94bb - Applicability of Tax to Certain Transfers.

Section 205.94cc - Data Center Equipment; Exemption From Tax; Conditions; Report; Definitions.

Section 205.94dd - Improvements to Real Property Included Within Transformational Brownfield Plan; Applicability of Tax Levy Applied to Tangible Personal Property; "Eligible Property" and "Transformational Brownfield Plan" Defined.

Section 205.94ee - Storage, Use, or Consumption of Certain Tangible Personal Property Acquired by a Contractor; Exemption From Tax.

Section 205.94ff - Sales of Certain Prosthetic Devices; Exemption; Definitions.

Section 205.95 - Registration Requirements; Seller to Collect Tax From Consumer; Foreign Corporations; Dissolution or Withdrawal of Corporation; Election of Lessor on Payment of Taxes; Registration Under Streamlined Sales and Use Tax Agreement.

Section 205.95a - Sale of Tangible Personal Property; Nexus With State; Presumptions; Purchase of Advertisements; Agreement; Effectiveness of Section; Definitions.

Section 205.95b - Seller of Tangible Personal Property or Services; Nexus; Conditions; Application to Transactions After October 1, 2018; Inclusion of Sales of Marketplace Facilitator and Marketplace Seller; Exception; Definitions.

Section 205.95c - Marketplace Facilitators; Nexus; Report; Class Action Prohibited; Audit; Liability; Conditions; Definitions.

Section 205.96 - Use Tax Returns; Filing; Form; Contents; Payment of Tax; Remittance for Certain Total Tax Liability After Subtracting Tax Payments; Electronic Funds Transfer; Filing Other Than Monthly Returns; Accrual to State; Due Date.

Section 205.96a - Reepaled. 2006, Act 673, Eff. Jan. 1, 2011.

Section 205.96c - Aviation Fuel; Informational Report; "Aviation Fuel" Defined.

Section 205.97 - Liability for Tax.

Section 205.98 - Direct Payment Authorization.

Section 205.99 - Personal Liability of Seller or Certified Service Provider for Failure to Collect Tax; Definition.

Section 205.99a - Bad Debt Deduction.

Section 205.100 - Administration of Tax; Conflicting Provisions; Rules; Filing Claims for Refund; Payment of Refunds; Payment of Refund Filed for Interstate Access Telephone Services; Tax Imposed Under Tobacco Products Tax Act.

Section 205.100a - Receipt and Collection of Local Community Stabilization Share.

Section 205.101 - Refund or Credit for Returned Tangible Personal Property or Service; Written Notice.

Section 205.101a - Selling or Quitting Business; Final Return; Withholding of Purchase Money to Cover Taxes, Interest, and Penalties; Liability for Failure to Withhold Purchase Money; Purchaser Liability for Taxes, Interest, and Penalties of Former O...

Section 205.102 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.

Section 205.103 - Repealed. 2016, Act 160, Eff. Sept. 7, 2016.

Section 205.103a - Sales of Advertising and Promotional Direct Mail; Sales of Other Direct Mail; Direct Payment Authorization or Exemption Form Provided by Purchaser; Limitation; Definitions.

Section 205.104 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.

Section 205.104a - Inventory and Records; Maintenance; Preservation; Tax Liability; Failure to File Return or Preserve Records; Tax Assessment; Basis; Indirect Audit; Information Exception; Blanket Exemption; "Indirect Audit Procedure" and "Suffici...

Section 205.104b - Exemption Claimed by Purchaser; Duties of Seller; Process to Claim Exemption After Purchase.

Section 205.105 - Failing to Register; Penalty.

Section 205.106 - Seller's Failure to Comply With Act; Penalty.

Section 205.107 - Computation of Tax Amount; Rounding Up to Whole Cent.

Section 205.108 - Consumer's Failure to Comply With Act; Making False Statement; Penalty.

Section 205.109 - Collection or Payment of Tax; Benefit to State, Authority, and Metropolitan Areas.

Section 205.110 - Sourcing Requirements.

Section 205.111 - Deposit and Disbursement of Money; Definitions.