GENERAL SALES TAX ACT
Act 167 of 1933
205.73 Advertisement; amounts added to sales prices for reimbursement purposes; brackets; tax imposed under tobacco products tax act.
Sec. 23.
(1) A person engaged in the business of selling tangible personal property at retail shall not advertise or hold out to the public in any manner, directly or indirectly, that the tax imposed under this act is not considered as an element in the price to the consumer. This act does not prohibit any taxpayer from reimbursing himself or herself by adding to the sale price any tax levied by this act.
(2) Subject to subsection (3), in determining amounts to be added to the sales prices for reimbursement purposes, the seller shall compute the tax to the third decimal place and round up to a whole cent when the third decimal place is greater than 4 or round down to a whole cent when the third decimal place is 4 or less.
(3) The following brackets may be used through December 31, 2005 by retailers in determining amounts to be added to sales prices for reimbursement purposes:
|
Amount
of Sale
|
Tax
|
|
1
cent to 10 cents
|
0
|
|
11
cents to 24 cents
|
1 cent
|
|
25 cents
to 41 cents
|
2 cents
|
|
42
cents to 58 cents
|
3 cents
|
|
59
cents to 74 cents
|
4 cents
|
|
75
cents to 91 cents
|
5 cents
|
|
92
cents to 99 cents
|
6 cents
|
|
For
$1.00 and each multiple of $1.00, 6% of the sale price.
|
(4) A person other than this state may not enrich himself or herself or gain any benefit from the collection or payment of the tax.
(5) A person subject to tax under this act shall not separately state on an invoice, bill of sale, or other similar document given to the purchaser the tax imposed under the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436.
History: 1933, Act 167, Imd. Eff. June 28, 1933 ;-- CL 1948, 205.73 ;-- Am. 1949, Act 272, Eff. July 1, 1949 ;-- Am. 1964, Act 194, Eff. Aug. 28, 1964 ;-- Am. 1993, Act 325, Eff. May 1, 1994 ;-- Am. 2004, Act 173, Eff. Sept. 1, 2004
Notes of Decisions
Andrie Inc v. Dep't of Treasury, 853 N.W.2d 310 (Mich. 2014).
· cites it 46× “MCL 205.73(1), which states that a retail seller may not state or imply that an item’s purchase price does not include sales tax, did not relieve Andrie of its duty to prove that sales tax was paid.”
Sims v. Firestone Tire & Rubber Co., 245 N.W.2d 13 (Mich. 1976).
· cites it 4× “" MCLA 205.73; MSA 7.544. *474 Thus while retailers are considered to be the taxpayers, the law allows them to shift the economic burden of any tax levied to the shoulders of the consumers.”
United States v. State of Michigan, 851 F.2d 803 (6th Cir. 1988).
· cites it 2× “for the privilege of engaging in that business.” Michigan also notes that the statute merely permits, but does not require, the seller to reimburse himself for his tax expense by passing on the financial burden to the buyer.”
Lockwood v. Comm'r of Revenue, 98 N.W.2d 753 (Mich. 1959).
· cites it 2× “The act further provides that a person engaged in the business of selling tangible personal property at retail shall not advertise or hold out to the public that the tax is not included in the price, and it is also specifically declared (CLS 1956, § 205.73 [Stat Ann 1950 Rev §…”
United States v. State of Mich., 635 F. Supp. 944 (W.D. Mich. 1985).
· cites it 4× “Additionally, Mich.Comp. Laws Ann. § 205.73 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,…”
Nat'l Bank v. Dep't of Revenue, 54 N.W.2d 278 (Mich. 1952).
“It is alleged and not denied, however, that the economic burden of the tax is always passed on to the consumer, and that such was the intent of the legislature when formulating the sales tax act, as evidenced by section 23 thereof, supra (CL 1948, § 205.73, as amended by PA…”
United States v. Michigan, 635 F. Supp. 944 (W.D. Mich. 1985).
· cites it 4× “Additionally, Mich.Comp. Laws Ann. § 205.73 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,…”
Sims v. Firestone Tire & Rubber Co., 224 N.W.2d 103 (Mich. Ct. App. 1974).
“MCLA 205.73; MSA 7.544 provides in part as follows: "Nothing contained in this act shall be deemed to prohibit any taxpayer from reimbursing himself by adding to his sale price any tax levied hereunder.”
Mjr Grp. LLC v. Dep't of Treasury (Mich. Ct. App. 2016).
· cites it 2× “The Department denied the refund, concluding that even had MJR erroneously collected sales tax, MCL 205.73 prohibited MJR from keeping the sales tax it had wrongfully collected from customers.”
Tomra of North Am. Inc v. Dep't of Treasury (Mich. Ct. App. 2022).
· cites it 2× “Finally, plaintiff was procedurally not entitled to a refund in the manner requested under MCL 205.73(4). Additionally, in case LC No.”
— Mich. Comp. Laws § 205.73(1) — 2 cases
Andrie Inc v. Dep't of Treasury, 853 N.W.2d 310 (Mich. 2014).
“MCL 205.73(1), which states that a retail seller may not state or imply that an item’s purchase price does not include sales tax, did not relieve Andrie of its duty to prove that sales tax was paid.”
— Mich. Comp. Laws § 205.73(4) — 5 cases
Mjr Grp. LLC v. Dep't of Treasury (Mich. Ct. App. 2016).
“The Department denied the refund, concluding that even had MJR erroneously collected sales tax, MCL 205.73 prohibited MJR from keeping the sales tax it had wrongfully collected from customers.”
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