Mich. Admin. Code R. 205.67 - Fuel dealers
Rule 17.
(1) The
sale of coal, coke, wood, fuel oil, liquid petroleum gas, and other fuel that
is not otherwise exempt is taxable based on the sales or purchase price. The
sale for residential use of electricity, natural or artificial gas, or home
heating fuels is exempt from the sales tax at the additional rate of 2%, as
approved by the electors on March 15, 1994.
(2) The sale of equipment, tools, materials
and supplies, consumed or used in handling and preparing fuel for market or
delivery is taxable.
(3) The sale
of bottled gas cylinders by dealers and distributors is subject to tax at the
time of sale. A dealer or distributor that rents bottled gas cylinders to its
customers may elect to pay use tax on the rental receipts instead of paying
sales tax when the dealer or distributor purchases the cylinder for use in its
rental business. See R
205.132.
(4) The sale of fuel used in rail operations
is exempt from tax, except for use in vehicles licensed and titled for use on
public highways.
(5) The sale of
fuel used or consumed in the manufacturing of power, heat, light, or gas to be
sold at retail is not taxable.
(6)
The sale of fuel used for an exempt agricultural purpose or industrial
processing is exempt from tax.
Notes
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