Frequently Asked Questions (FAQ)

Taxes

Question:
Is our village exempt from sales tax? Do we have to file with the state for a tax exemption number?

Answer:
Section 4 of the General Sales Tax Act (MCL 205.54(6)) and Michigan Sales and Use Tax Administrative Rule, 1979 AC, R 205.79 provide that sales to the United States government, the State of Michigan and their political subdivisions are not taxable when ordered on a governmental purchase order and paid for by warrant on government funds.

A Certificate of Exemption may be required by your vendors as they must either collect the sales tax or provide proof to the state the sale is exempt. You may request the prescribed form from the Department of Treasury, Sales and Use Tax Div. (517- 373-2746, Technical Services) or download it from Treasury’s web site (www.treas.state.mi.us/).