Sec. 4g.
(1) The tax levied shall not apply to property purchased from a seller or transferor if the property is part of the purchase or transfer of a business.
(2) The exemption provided by this section shall not apply to all of the following:
(a) The purchase or transfer of tangible personal property that is stock-in-trade or other property of a kind which would properly be included in the inventory of the seller or transferor if on hand at the close of the seller's or transferor's tax period or property held by the seller or transferor for sale to customers in the ordinary course of its trade or business.
(b) The purchase or transfer of a motor vehicle, ORV, mobile home, aircraft, snowmobile, or watercraft.
(3) As used in this section, "purchase or transfer of a business" means 1 or more of the following:
(a) The purchaser or transferee has acquired and intends to use the seller's or transferor's trade name or good will.
(b) The purchaser or transferee intends to continue all or part of the business of the seller or transferor at the same location or at another location.
(c) The purchaser or transferee acquired at least 75% of the seller's or transferor's tangible personal property at 1 or more of the seller's or transferor's business locations.
History: Add. 1985, Act 66, Imd. Eff. July 1, 1985 Compiler's Notes: Section 2 of Act 66 of 1985 provides: “This amendatory act is intended to clarify the misinterpretation of Act No. 94 of the Public Acts of 1937, being sections 205.91 to 205.111 of the Michigan Compiled Laws, to the extent that the act may be construed to impose tax liability on the purchaser or transferee in cases where the seller or transferor of a business is entitled to claim an exemption for an isolated sale under section 1(f) of the general sales tax act, Act No. 167 of the Public Acts of 1933, being section 205.51 of the Michigan Compiled Laws.
Structure Michigan Compiled Laws
Act 94 of 1937 - Use Tax Act (205.91 - 205.111)
Section 205.91 - Use Tax Act; Short Title.
Section 205.92b - Additional Definitions.
Section 205.92c - Definitions.
Section 205.93c - Sale of Telecommunications Services; Definitions.
Section 205.93d - Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
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Section 205.94b, 205.94c - Repealed. 2004, Act 172, Eff.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Section 205.94e - Repealed. 2004, Act 172, Eff.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 205.94h - Tax Inapplicable to Property for Use in Qualified Business Activity.
Section 205.94i - Exemption for Drop Shipments; Definition.
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 205.94v - 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 205.94bb - Applicability of Tax to Certain Transfers.
Section 205.94cc - Data Center Equipment; Exemption From Tax; Conditions; Report; Definitions.
Section 205.94ff - Sales of Certain Prosthetic Devices; Exemption; Definitions.
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 205.99a - Bad Debt Deduction.
Section 205.100a - Receipt and Collection of Local Community Stabilization Share.
Section 205.102 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.
Section 205.103 - Repealed. 2016, Act 160, Eff. Sept. 7, 2016.
Section 205.104 - Repealed. 2008, Act 439, Imd. Eff. Jan. 9, 2009.
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.