Mich. Admin. Code R. 205.1 - Sales tax licenses
Rule 1.
(1) Except
as provided in subrules (7) and (8) of this rule, a Michigan sales tax license
must be obtained by every person engaged in the business of selling tangible
personal property at retail in this state. A person shall not engage or
continue in the business of making sales at retail in this state without
securing a license, regardless of the amount of sales or the manner of
obtaining goods for sale. An application for a license, before or at the time
of beginning business, must be made to the department of treasury on a form or
in a manner prescribed by the department of treasury. All licenses must be
displayed on the licensed premises.
(2) Every sales tax license expires on
September 30 of each year, regardless of the date the license is issued, and
must be renewed by furnishing the information as the department of treasury may
require. A person selling at retail at more than 1 location or place of
business shall display a copy of the license at each location. If a valid
license is lost or destroyed, it may be replaced without charge by notifying
the department of treasury.
(3) A
license is not transferable and a new license must be secured immediately if
there is a change of ownership of the business. For example, if a partner is
added or dropped, or if a corporation is formed or dissolved, this constitutes
a change of ownership necessitating application in the name of the new
ownership for a sales tax license to sell at retail. If the new owner fails to
apply for a license, the new owner may be subjected to penalty for operating
without a valid sales tax license.
(4) The fact that a person is licensed by the
department of treasury to sell at retail does not automatically mean that sales
to the licensed person are exempt from sales tax as sales for resale.
(5) The department of treasury may deny a
license to an applicant if the department of treasury considers the applicant
to be the agent or representative of a principal required to be licensed and
responsible for filing the sales tax returns.
(6) The department of treasury may require an
applicant for a sales tax license to submit a surety bond as provided by
statute.
(7) A person making retail
sales at 2 or fewer events per calendar year is not required to obtain a
license, but instead shall file a per event tax return as follows
(a) If the 2 or fewer events are for purposes
of fundraising, a special events sales tax return must be filed.
(b) If the 2 or fewer sales events are not
for fundraising purposes, a concessionaire's sales tax return must be
filed.
(8) A person only
making casual and isolated sales as described in
R 205.13 is not required to obtain a
Michigan sales tax license.
Notes
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