On-line Purchases Not Tax-Free in Michigan with Use Tax

Filed under: U.P. News Updates |

Use Tax in MichiganMARQUETTE, MI – (Great Lakes Radio News)The Michigan Department of Treasury is reminding shoppers that purchases made on-line are not tax-free during the holiday season, or at any other time of year.

Officials say Michigan’s Use Tax generally applies to transactions in which the retailer does not collect sales tax. This happens most frequently when an individual makes a purchase from on-line retailers, through mail-order outlets, or television shopping networks that do not have physical locations in Michigan.

When out-of-state vendors do not collect sales tax on purchases, under Michigan law, the purchaser is responsible for reporting and paying the Use Tax.  Treasury officials say taxpayers can report the Use Tax annually when completing and filing their Michigan Individual Income Tax Return.

Michigan’s Use Tax is calculated at the rate of 6 percent.

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