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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667

Blog: www.EdKisscorni.com/Blog1
Email: Ed@EdKisscorni.com
 



 



 

 Blog 
Friday, September 20 2013

MACPA Sales and Use Tax Seminars Visit Two Cities in September and October

Take this opportunity to become up-to-date on the sales and use tax law, rules, bulletins and court cases.  The Department of Treasury is promulgating several new rules for the administration of the sales tax and the use tax.  Most of the changes update the old rules or rescinded rules that no longer were applicable.  The legislature is currently working on amendments to both the sales and use tax laws to address issues with the administration and compliance of the complicated laws.  The courts issued 25 opinions on sales and use tax cases in 2012 and 2013.  Over the last several years the number of sales and use tax audits as well as the intensity of such audits have increased. Auditors are raising new issues and employing different auditing techniques.

Register on line at the MACPA website:

Wednesday, September 25, 2013 - VisTaTech Center Schoolcraft College, Livonia Michigan

http://www.michcpa.org/Aptify/Meetings/Meeting.aspx?ID=24657

Tuesday, October 29, 2013 - Hilton Grand Rapids Airport - Grand Rapids, Michigan

http://www.michcpa.org/Aptify/Meetings/Meeting.aspx?ID=24687

Amendments to the General Sales Tax Act and the Use Tax Act

Public Act 126 of 2012 - Amends the sales tax act to eliminate the sales tax exemption for sales to inmates.

Public Act 211 of 2012 - Clarifies what constitutes the filing of a return for purposes of the statute of limitations.

Public Act 299 of 2012 - Limits the imposition of the use tax on a manufacturer contractor to affixations to real estate in Michigan; effectively eliminating the use tax on out of Michigan contracts.  PA 299 is retroactive and effective January 1, 2006.

Public Act 474 of 2012 - Amends the use tax act to provide an exemption for property purchased or manufactured by a contractor to the extent that the property was affixed to and made a structural part of real estate located outside of Michigan.

Public Act 412 of 2012 and Public Act 413 of 2012 expands the sales tax and use tax exemptions for tangible personal property used at a producing mine or a facility where beneficiation of minerals occurred.

Public Act 429 of 2012 and Public Act 467 of 2012 expands the sales and use tax exemptions for parts or other tangible personal property affixed to or to be affixed to and directly used in the operation of either a qualified truck or a trailer designed to be drawn behind a qualified truck.  Both Public Act 467 and Public Act 429 are curative and intended to clarify the original intent of the law.

Administrative Rules

Effective May 6, 2013, the Department of Treasury has promulgated a set of revised General Sales and Use Tax Rules and Specific Sales and Use Tax Rules.  Three rules were rescinded.  Notably missing was a proposed rule on single mixed transactions.

Judicial Decisions

Michigan courts issued 25 opinions on sales and use tax cases in 2012 and 2013.  Two major cases will be decided by the Michigan Supreme Court in the Fall of 2013.

Tax Administration and Compliance

Audit Standards - House Bill 4291 - Amends the Revenue Act

Transparency and Guidance - House Bill 4290 - Amends the Revenue Act

Audit Procedures - House Bill 4288 - Amends the Sales Tax Act and House Bill 4292 - Amends the Use Tax Act.  Limits the use of indirect audit procedures by the Department of Treasury.

Collection Goals, Budgets or Quotas - Senate Bill 327 - Amends the Revenue Act

Officer Liability/Successor Liability - Senate Bill 64 - Amends the Revenue Act

Offer in Compromise - House Bill 4003 - Amends the Revenue Act

Delayed Refunds to Taxpayers - House Bill 4002 - Amends the Revenue Act

Limitation on Time to Audit/Refund Claims - Senate Bill 337 - Amends the Revenue Act

Confidentiality - Senate Bill 316 - Amends the Revenue Act

Who Should Attend:
Individuals who desire a working knowledge of how the Michigan Sales and Use Tax works.

 

The Basics of Sales and Use Tax

            Sales Tax

            Use Tax 

            Exemptions

            Sourcing of Sales

            Records

            Direct Pay Authorization

            Compliance Agreements

            Exemption Documentation Requirements

Sales and Use Tax Audits and Appeals

            Sales and Use Tax Audits

            Audit Sampling Procedures

            Sales and Use Tax Appeals

            Penalty and Interests

Special Industry Application of the Sales and Use Tax

            Contractors

            Contractors vs Retailed

            Service vs Sale of Tangible Personal Property

            Industrial Processing

            Extractive Operations

            Containers, Cartons and Materials

            Healthcare

            Computer Software

            Rentals

            Interstate Motor Carrier Property

            Discounts, Rebates and Coupons

            Drop Shipments

            Delivery Services

            Food for Human Consumption

            Interstate Commerce

            Isolated Sales 

           

Posted by: Ed Kisscorni AT 11:00 am   |  Permalink   |  Email

 

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