GENERAL SALES TAX ACT
Act 167 of 1933
205.52 Sales tax; rate; additional applicability; separate books required; penalty; tax as personal obligation of taxpayer; exemption.
Sec. 2.
(1) Except as provided in section 2a, there is levied upon and there shall be collected from all persons engaged in the business of making sales at retail, by which ownership of tangible personal property is transferred for consideration, an annual tax for the privilege of engaging in that business equal to 6% of the gross proceeds of the business, plus the penalty and interest if applicable as provided by law, less deductions allowed by this act.
(2) The tax under subsection (1) also applies to the following:
(a) The transmission and distribution of electricity, whether the electricity is purchased from the delivering utility or from another provider, if the sale is made to the consumer or user of the electricity for consumption or use rather than for resale.
(b) The sale of a prepaid telephone calling card or a prepaid authorization number for telephone use, rather than for resale, including the reauthorization of a prepaid telephone calling card or a prepaid authorization number.
(c) A conditional sale, installment lease sale, or other transfer of property, if title is retained as security for the purchase but is intended to be transferred later.
(3) Any person engaged in the business of making sales at retail who is at the same time engaged in some other kind of business, occupation, or profession not taxable under this act shall keep books to show separately the transactions used in determining the tax levied by this act. If the person fails to keep separate books, there shall be levied upon him or her the tax provided for in subsection (1) equal to 6% of the entire gross proceeds of both or all of his or her businesses. The taxes levied by this section are a personal obligation of the taxpayer.
(4) A meal provided free of charge or at a reduced rate to an employee during work hours by a food service establishment licensed by the Michigan department of agriculture for the convenience of the employer is not considered transferred for consideration.
History: 1933, Act 167, Imd. Eff. June 28, 1933 ;-- CL 1948, 205.52 ;-- Am. 1949, Act 272, Eff. July 1, 1949 ;-- Am. 1960, 2nd Ex. Sess., Act 1, Eff. Jan. 1, 1961 ;-- Am. 1984, Act 228, Imd. Eff. July 30, 1984 ;-- Am. 1993, Act 325, Eff. May 1, 1994 ;-- Am. 2004, Act 173, Eff. Sept. 1, 2004
Compiler's Notes:
Enacting section 1 of Act 467 of 2014 provides:
"Enacting section 1. This amendatory act does not take effect unless House Joint Resolution UU of the 97th Legislature becomes a part of the state constitution of 1963 as provided in section 1 of article XII of the state constitution of 1963."
House Joint Resolution UU was presented to the electors as Proposal 15-1 at the May 5, 2015 special election. The proposal to amend the constitution was not approved by the voters and Act 467 of 2014 does not go into effect.
Notes of Decisions
Andrie Inc v. Dep't of Treasury, 853 N.W.2d 310 (Mich. 2014).
· cites it 29× “Justice ZAHRA, dissenting, stated that because MCL 205.52(1) places the burden of paying sales tax only on retailers and not on consumers, the Court should have afforded consumers a presumption that retailers had actually paid sales tax if it was evident that sales tax was due…”
Catalina Mktg. Sales Corp. v. Dep't of Treasury, 678 N.W.2d 619 (Mich. 2004).
· cites it 3× “The issue in this case is whether the Michigan Tax Tribunal and the Court of Appeals erred in holding that petitioners’ Checkout Coupon™ program, which involves both the transfer of tangible personal property and the provision of services, constitutes a sale at retail that is…”
Elias Bros. Restaurants, Inc. v. Treasury Dep't, 549 N.W.2d 837 (Mich. 1996).
· cites it 4× “Similarly, the use tax provisions except property acquired in a transaction in this state on which a sales tax has been paid in this state or a sales tax has been paid in another state for the same transaction or property. M.C.L. § 205.94; M.S.A. § 7.555(4).”
Sims v. Firestone Tire & Rubber Co., 245 N.W.2d 13 (Mich. 1976).
· cites it 6× “Section 2 of that act, MCLA 205.52; MSA 7.522, imposes the sales tax as follows: "There is hereby levied upon and there shall be collected from all persons engaging in the business of making sales at retail, as hereinbefore defined, an annual tax for the privilege of engaging in…”
Gen. Motors Corp. v. Dep't of Treasury, 644 N.W.2d 734 (Mich. 2002).
· cites it 2× “In contrast, pursuant to the Michigan Use Tax Act (UTA), use tax is generally imposed on the privilege of "using, storing, or consuming tangible personal property.”
Lockwood v. Comm'r of Revenue, 98 N.W.2d 753 (Mich. 1959).
· cites it 4× “CLS 1956, § 205.52 (Stat Ann 1950 Rev § 7.522). As pointed out in City of Wyandotte v.”
Santander Consum. USA Inc v. State Treasurer, 918 N.W.2d 662 (Mich. 2018).
“The relevant statute, MCL 205.52(1), provides: Except as provided in section 2a, there is levied upon and there shall be collected from all persons engaged in the business of making sales at retail, [ 18 ] by which ownership of tangible personal property is transferred for…”
Midamerican Energy Co. v. Dep't of Treasury, 308 Mich. App. 362 (Mich. Ct. App. 2014).
· cites it 2× “The Act defines “tangible personal property” as personal property that can be seen, weighed, measured, felt, or touched or that is in any other manner perceptible to the senses and includes electricity, water, gas, steam, and prewritten computer software. [MCL 205.51a(q).”
By Lo Oil Co. v. Dep't of Treasury, 703 N.W.2d 822 (Mich. Ct. App. 2005).
“” MCL 205.52(1). At the time pertinent to this case, “sale at retail” meant “a transaction by which the ownership of tangible personal property is transferred for consideration, if the transfer is made in the ordinary course of the transferor’s business and is made to the…”
Menard Inc. v. Dep't of Treasury, 302 Mich. App. 467 (Mich. Ct. App. 2013).
“Pursuant to MCL 205.52(1) of the GSTA, business persons engaged in making sales at retail must pay an annual tax for the privilege of engaging in business in this state.”
Michigan Bell Tel. Co. v. Dep't of Treasury, 581 N.W.2d 770 (Mich. Ct. App. 1998).
· cites it 2× “MCL 205.52; MSA 7.522. As the Court in Lockwood, supra at 527 , explained: As a practical proposition [the use tax and the sales tax] are assessed on different privileges, and the legal incidence of the tax falls in one case on the retailer and in the other on the user, storer…”
— Mich. Comp. Laws § 205.52(1) — 26 cases
Andrie Inc v. Dep't of Treasury, 853 N.W.2d 310 (Mich. 2014).
“Justice ZAHRA, dissenting, stated that because MCL 205.52(1) places the burden of paying sales tax only on retailers and not on consumers, the Court should have afforded consumers a presumption that retailers had actually paid sales tax if it was evident that sales tax was due…”
Gen. Motors Corp. v. Dep't of Treasury, 644 N.W.2d 734 (Mich. 2002).
“In contrast, pursuant to the Michigan Use Tax Act (UTA), use tax is generally imposed on the privilege of "using, storing, or consuming tangible personal property.”
Santander Consum. USA Inc v. State Treasurer, 918 N.W.2d 662 (Mich. 2018).
“The relevant statute, MCL 205.52(1), provides: Except as provided in section 2a, there is levied upon and there shall be collected from all persons engaged in the business of making sales at retail, [ 18 ] by which ownership of tangible personal property is transferred for…”
Midamerican Energy Co. v. Dep't of Treasury, 308 Mich. App. 362 (Mich. Ct. App. 2014).
“The Act defines “tangible personal property” as personal property that can be seen, weighed, measured, felt, or touched or that is in any other manner perceptible to the senses and includes electricity, water, gas, steam, and prewritten computer software. [MCL 205.51a(q).”
Catalina Mktg. Sales Corp. v. Dep't of Treasury, 678 N.W.2d 619 (Mich. 2004).
“The issue in this case is whether the Michigan Tax Tribunal and the Court of Appeals erred in holding that petitioners’ Checkout Coupon™ program, which involves both the transfer of tangible personal property and the provision of services, constitutes a sale at retail that is…”
— Mich. Comp. Laws § 205.52(2) — 3 cases
Michigan Bell Tel. Co. v. Dep't of Treasury, 581 N.W.2d 770 (Mich. Ct. App. 1998).
“MCL 205.52; MSA 7.522. As the Court in Lockwood, supra at 527 , explained: As a practical proposition [the use tax and the sales tax] are assessed on different privileges, and the legal incidence of the tax falls in one case on the retailer and in the other on the user, storer…”
— Mich. Comp. Laws § 205.52(2)(B) — 2 cases
— Mich. Comp. Laws § 205.52(2)(b) — 2 cases
— Mich. Comp. Laws § 205.52(3) — 1 case
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