Michigan Use Tax on Services will be Taxed in the Same Manner as the Sales Tax
Section 3d of the Use Tax Act, which was added by Public Act 93 of 2007, provides: "The use or consumption of the following services is taxed under this act in the same manner as tangible personal property is taxed under this act:"
What does this mean? Perhaps the new Use Tax on Services will be collected from the service provider in much the same manner as the Sales Tax is collected from the seller. However, unlike the Sales Tax, the Use Tax is imposed on the consumer. Therefore, if the tax is collected from the service provider, then the service provider must either show the use tax as a separate item on the invoice to the customer or make a notation to the effect that the price includes the Use Tax.
If the service provider does not pay the Use Tax on a taxable transaction, the consumer is liable for the tax.
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