The exemptions in the Use Tax Act based on either type of entity or use are applicable to the sales of taxable services.  Section 4 of the Use Tax Act reads:  "The following are exempt from the tax levied under this act ..."  This means exempt entities like churches, schools, hospitals and other non-profit organizations would be exempt from the Use Tax on services.  Also, the purchase of otherwise taxable services would be exempt from the Use Tax on services if used in an exempt activity like industrial processing or agricultural production. 

The Use Tax Act in Section 4 exempts from tax property, or services taxed as property, on which sales tax was paid.  In addition Section 4 also includes an exemption for resale.  It would appear a limited inputs exemption would be available.  That means:  Tangible personal property used or consumed in providing a taxable service would be exempt from tax. The purchase of a taxable service which is used or consumed in providing a taxable service would be exempt from tax.

The existing record keeping requirements and exemption documentation requirements are applicable.