Edward J. Castellani, CPA, Practice Area Chair

Michigan sales taxes must be collected by businesses with nexus with Michigan which make retail sales of tangible property in Michigan. What tangible property is subject to sales tax, who has nexus with Michigan and is obligated to collect sales and use tax, and what types of transactions are exempt, are all questions that we can answer. Furthermore, tangible property purchased from an out-of-state seller for use or consumption in Michigan is subject to the Michigan use tax. As purchases from catalogues or over the Internet become more common, out-of-state purchases have become subject to growing audit scrutiny. In addition, there are numerous Federal and State court cases which determine whether a business has nexus with the State of Michigan and is required to collect sales or use tax.