- ShindelRock - https://www.shindelrock.com -

SR Client Question: Do I owe Michigan sales tax when I buy a vehicle from a business I own?

[1]The transfer of vehicles from a business entity to the owner of the business is addressed in Revenue Administrative Bulletin 1991-1 [2] and makes, in most instances, the transfer or “sale” of a vehicle from a business to its owner exempt from owing State of Michigan sales tax on the transaction.

To prove the validity of the transaction’s tax exemption, plan to supply the State of Michigan with:

If you have further questions regarding a business-to-owner transaction, please contact your ShindelRock tax professional [3].