All states that have a sales tax also have a companion tax for purchases that are made outside of those states; in Michigan this companion tax is called "Use Tax", Also known as remote sales tax. It is a six percent tax that is due on catalog, telephone, and Internet purchases from out-of-state sellers, as well as purchases made within a foreign country while traveling and you intend on bringing those items back to Michigan. Use Tax must be paid on the total price paid to the seller, including any shipping and handling charges.
You should review your records to determine if the retailer charged tax at the time of the sale. If the Michigan tax was paid at six percent, no additional tax would be due. If you paid less than six percent, you would owe the difference.
To report Use Tax within the program, go to:
- State Section
- Michigan
- Edit
- Use Tax
For more information regarding Michigan use tax, please refer to MI-1040 instructions.