Michigan 6% Use Tax Can be Paid on the Michigan Individual Income Tax Return
The Michigan Department of Treasury has reminded residents that, during the holiday shopping season, use tax may be owed on online purchases made from out-of-state retailers, such as e-commerce retailers, TV home-shopping networks, and catalog retailers. In a release dated December 14, 2011 taxpayers are reminded of their tax paying obligation.
Michigan consumers are required to pay use tax on their purchases when out-of-state retailers do not collect Michigan use tax. Use tax applies generally to purchases of the same types of items that are subject to sales tax.
The state use tax rate is 6%, the same as the state sales tax rate. The easiest way to report and pay the use tax is on a taxpayer's Michigan individual income tax return that is due for most filers on April 15 of each year.
If the purchaser is a business, the use tax should be reported on the combined sales-use-withholding tax return. Every business in Michigan should be registered for use tax.