GENERAL SALES TAX ACT
Act 167 of 1933
205.54 Deductions; filing estimated returns and annual periodic reconciliations; registration under streamlined sales and use tax agreement.
Sec. 4.
(1) In computing the amount of tax levied under this act for any month, a taxpayer not subject to section 6(2) may deduct the amount provided by subdivision (a) or (b), whichever is greater:
(a) If the tax that accrued to this state from the sales at retail during the preceding month is remitted to the department on or before the twelfth day of the month in which remittance is due, 0.75% of the tax due at a rate of 4% for the preceding monthly period, but not to exceed $20,000.00 of the tax due for that month. If the tax that accrued to this state from the sales at retail during the preceding month is remitted to the department after the twelfth day and on or before the twentieth day of the month in which remittance is due, 0.50% of the tax due at a rate of 4% for the preceding monthly period, but not to exceed $15,000.00 of the tax due for that month.
(b) The tax at a rate of 4% due on $150.00 of taxable gross proceeds for the preceding monthly period, or a prorated portion of $150.00 of the taxable gross proceeds for the preceding month if the taxpayer engaged in business for less than a month.
(2) Beginning January 1, 1999, in computing the amount of tax levied under this act for any month, a taxpayer who is subject to section 6(2) may deduct from the amount of the tax paid 0.50% of the tax due at a rate of 4%.
(3) A deduction is not allowed under this section for payments of taxes made to the department after the day the taxpayer is required to pay, pursuant to section 6, the tax imposed by this act.
(4) If, pursuant to section 6(4), the department prescribes the filing of returns and the payment of the tax for periods in excess of 1 month, a taxpayer is entitled to a deduction from the tax collections remitted to the department for the extended payment period that is equivalent to the deduction allowed under subsection (1) or (2) for monthly periods.
(5) The department may prescribe the filing of estimated returns and annual periodic reconciliations as necessary to carry out the purposes of this section.
(6) A seller registered under the streamlined sales and use tax agreement may claim a deduction under this section if provided for in the streamlined sales and use tax administration act.
History: 1933, Act 167, Imd. Eff. June 28, 1933 ;-- Am. 1939, Act 313, Imd. Eff. June 22, 1939 ;-- CL 1948, 205.54 ;-- Am. 1949, Act 272, Eff. July 1, 1949 ;-- Am. 1981, Act 219, Eff. Mar. 31, 1982 ;-- Am. 1993, Act 18, Imd. Eff. Apr. 14, 1993 ;-- Am. 1993, Act 325, Eff. May 1, 1994 ;-- Am. 1998, Act 267, Imd. Eff. July 17, 1998 ;-- 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
Nat'l Bank v. Dep't of Revenue, 54 N.W.2d 278 (Mich. 1952).
· cites it 2× “” Although exemptions from the operation of the sales tax are now stated in sections 4 and 4a (CL 1948, §§ 205.54, 205.54a, as amended by PA 1949, No 272 [Stat Ann 1950 Rev §§7.”
United States v. State of Mich., 635 F. Supp. 944 (W.D. Mich. 1985).
· cites it 4× “73 allows the retailer to pass on the sales tax to the ultimate consumer: No person engaged in the business of selling tangible personal property at retail shall advertise or hold out to the public in any manner, directly or indirectly, that the tax herein imposed is not…”
Garavaglia v. Dep't of Revenue, 61 N.W.2d 612 (Mich. 1953).
“” (CLS 1952, § 205.54, Stat Ann 1950 Rev § 7.524.) To hold that because of the industrial processing .”
Knapp-Stiles, Inc. v. Dep't of Revenue, 122 N.W.2d 642 (Mich. 1963).
“” Section 4 of that statute, CLS 1956, § 205.54 (Stat Ann 1960 Rev § 7.524), reads in part: “No person subject to a tax under this act need include in the amount of his gross proceeds used for the computation of the tax any proceeds of his business derived from sales to the…”
Compupharm-LTC v. Dep't of Treasury, 570 N.W.2d 476 (Mich. Ct. App. 1997).
· cites it 2× “Petitioner also asserted that the imposition of a sales tax on drugs and medical supplies sold to patients covered by Medicaid, Medicare, or Veteran’s Administration programs constitutes the imposition of a tax on the federal government, which is prohibited by the Supremacy…”
United States v. Michigan, 635 F. Supp. 944 (W.D. Mich. 1985).
· cites it 2× “73 allows the retailer to pass on the sales tax to the ultimate consumer: No person engaged in the business of selling tangible personal property at retail shall advertise or hold out to the public in any manner, directly or indirectly, that the tax herein imposed is not…”
Nat'l Bank v. Dep't of Revenue, 66 N.W.2d 237 (Mich. 1955).
“Act No 272, § 4, of the Public Acts of that year (CLS 1952, § 205.54, Stat Ann 1950 Rev § 7.524), purported to eliminate such exemption.”
Feige v. Burt, 83 N.W. 367 (Mich. 1900).
“On motion, plaintiff was afterwards required to remit the fur-t’/ier sum of §205.54.”
Menard Inc v. Dep't of Treasury (Mich. 2014).
· cites it 3× “54(1)(e) is at least plausible given that their actions, in conjunction with those of the respective lenders, presumably constitute those of “any other group or combination acting as a unit,” thereby making each plaintiff a “person” under MCL 205.54(1)(a). The Court of Appeals…”
Td Auto Fin. LLC v. State Treasurer (Mich. Ct. App. 2020).
“, that plaintiff qualified as a “lender,” MCL 205.54(1)(e). The Department cited the deposition testimony of Travis Gilbert who testified—after being confronted with contradicting evidence—that he had no personal knowledge as to whether some of the accounts included in…”
— Mich. Comp. Laws § 205.54(1)(a) — 1 case
Menard Inc v. Dep't of Treasury (Mich. 2014).
“54(1)(e) is at least plausible given that their actions, in conjunction with those of the respective lenders, presumably constitute those of “any other group or combination acting as a unit,” thereby making each plaintiff a “person” under MCL 205.54(1)(a). The Court of Appeals…”
— Mich. Comp. Laws § 205.54(1)(e) — 2 cases
Td Auto Fin. LLC v. State Treasurer (Mich. Ct. App. 2020).
“, that plaintiff qualified as a “lender,” MCL 205.54(1)(e). The Department cited the deposition testimony of Travis Gilbert who testified—after being confronted with contradicting evidence—that he had no personal knowledge as to whether some of the accounts included in…”
Menard Inc v. Dep't of Treasury (Mich. 2014).
“54(1)(e) is at least plausible given that their actions, in conjunction with those of the respective lenders, presumably constitute those of “any other group or combination acting as a unit,” thereby making each plaintiff a “person” under MCL 205.54(1)(a). The Court of Appeals…”
— Mich. Comp. Laws § 205.54(5) — 1 case
United States v. State of Mich., 635 F. Supp. 944 (W.D. Mich. 1985).
“73 allows the retailer to pass on the sales tax to the ultimate consumer: No person engaged in the business of selling tangible personal property at retail shall advertise or hold out to the public in any manner, directly or indirectly, that the tax herein imposed is not…”
— Mich. Comp. Laws § 205.54(6) — 1 case
Compupharm-LTC v. Dep't of Treasury, 570 N.W.2d 476 (Mich. Ct. App. 1997).
“Petitioner also asserted that the imposition of a sales tax on drugs and medical supplies sold to patients covered by Medicaid, Medicare, or Veteran’s Administration programs constitutes the imposition of a tax on the federal government, which is prohibited by the Supremacy…”
— Mich. Comp. Laws § 205.54(g)(i) — 1 case
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