Michigan business entities, as well as individuals, may have significant known and unknown liability for use tax on purchases subject to the sales tax, but where payment of the sales tax cannot be proven. This is due to the Andrie Michigan Supreme Court use tax decision.
The decades-long presumption that a purchaser could presume sales tax was included in the purchase price of taxable tangible personal property if purchased from a Michigan vendor has been turned upside down. Michigan taxpayers must now prove that sales tax was paid on taxable transactions by the Michigan vendors from whom the purchaser acquires tangible personal property. The complicated Michigan Sales & Use tax has now become more convoluted.
Contributed by Edward S. Kisscorni.