State Sales Tax Rates

State Sales Tax Rates Michigan State Sales Tax 2014

Michigan Sales Tax 2014
Michigan State Sales Tax for 2014 Maximum Municipal Sales Tax

6.00%

0.00%

What is the Michigan Sales Tax?

The Michigan state sales tax is 6%, with a maximum possible sales tax (including local and municipal sales taxes) of 6%.

Unlike some other states, Michigan does not allow local and municipal governments to impose their own sales taxes. The maximum sales tax that can be collected anywhere in Michigan is 6% of the qualifying purchase price.

Michigan's sales tax was raised from 4% to 6% in 1996, and has remained at that level since. Michigan has a use tax of 6% in addition to the sales tax, which is supposed to be collected on all purchases made outsude of the state by Michigan residents and paid with their annual income tax return. A service tax also applies to a variety of services throughout the state, including service at restaraunts. New legislation intoduced also requires sales tax to be paid by Michigan residents on the entire order price of any transactions made online, including shipping charges.

What sales are exempt from the Michigan Sales Tax?

Michigan Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Michigan completely exempts unprepared food and groceries, and prescription drugs from the Michigan state sales tax.

Michigan does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.While many other states also collect a special (and often higher) sales tax on prepared and restaraunt food, Michigan does not have a specific restaraunt sales tax.

Generally, the Michigan sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Michigan sales tax if they provide the seller with a Michigan Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Michigan), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Michigan handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Michigan sales tax information on Tax-Rates.org
http://www.tax-rates.org/Michigan/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html