State taxes on shipping
Hello, Just wondering if eBay or any of the buyers in Michigan know why Michigan finally stopped charging taxes on the shipping in addition to the item, and (doubtful, I know) if the state will reimburse for the two or so years they were taxing the shipping?
2 comments
wastingtime101
·3 years agoYour state's website has answers @sheeneyman2
https://www.michigan.gov/taxes/business-taxes/delivery-and-installation-charges
Why Did This Change Happen?
Prior to the passage of Public Acts 20 and 21 of 2023, delivery and installation charges were generally subject to sales and use taxes because these fees were incurred prior to the transfer of ownership. This was arguably a confusing test to determine whether tax applies to a transaction. In addition, the prior tax treatment may have created a competitive disadvantage to businesses that provide “all-in-one†service to their customers for both the sale as well as the delivery and/or installation of a product.
Retroactive Relief
Under the statute (prior to Public Acts 20 and 21 of 2023), Treasury will not issue any new assessments on delivery or installation charges for tax periods before April 26, 2023. In addition, Treasury is actively identifying and cancelling all outstanding balances related to delivery and installation charges for tax periods before April 26, 2023. This review will be completed by July 25, 2023. Taxpayers with unpaid balances related to delivery or installation charges that have received Notices of Intent to Assess or Final Assessments (whether or not they are in an Informal conference or on appeal before a court) should contact Treasury at Treas-TCB-Technical@michigan.gov .
For tax periods prior to April 26, 2023, taxpayers are not entitled to a refund of tax remitted to Treasury on delivery or installation charges. Similarly, customers who paid tax on delivery or installation charges are not able to seek refunds from sellers or from Treasury for tax periods prior to April 26, 2023.
sheeneyman2
OP3 years agoHi, Thank you for the info. Glad to see they stopped taxing the shipping, not surprised to see they won't reimburse.