Michigan Real Property Sales Tax Exemption
Michigan exempts from sales tax the sale of tangible property used for production, manufacturing, or recycling of aggregate by the property if the aggregate is used as an ingredient or component part for construction, maintenance, repair, or reconstruction of real property in Michigan. The bill also specifies that property is eligible for an industrial processing exemption if it performs an industrial processing activity upon an aggregate product or material that will be used as an ingredient or component part for the construction, maintenance, repair, or reconstruction of real property in Michigan if that aggregate product or material is subject to the use tax. The bill requires the Department of Treasury to cancel any outstanding balances on notices of intent to assess or final assessments that were issued before the bill’s effective date that are related to the industrial processing activities and property that are exempted under the bill. The Department must cancel those balances within 90 days of the bill’s effective date and is prohibited from issuing any new assessments on those activities and property for any tax period before the bill took effect. Finally, the bill adds new language to the definitions of “industrial processing” and “industrial processor” in the General Sales Tax Act to include converting or conditioning tangible personal property for use in the manufacturing of a product to be affixed to and made a structural part of real estate located in another state.
Michigan Real Property Sales Tax Exemption
