Does Michigan Charge State Sales Tax On Carpet Installation

Services that are inseparable from the sale of a product are taxable.

Does michigan charge state sales tax on carpet installation.

Sales tax sometimes applies. A percentage based on the total sales price of the taxable property compared to the total sales price of all property in the delivery. Since the installation charge is tied to the sale of the water heater the installation charge although service based is. For example you sell water heaters and charge for installation.

Tax if we do not provide the installation i e we simply hand over the goods. Tax if we do not attach the carpet or pad with glue nails etc. A house hotel office building. Not taxable if done in a permanent structure e g.

Some states like california only tax some services. Sales use tax installation of flooring products e g carpet tile etc. Michigan does not tax the delivery or installation of tax exempt goods. A seller must collect michigan 6 use tax from michigan purchaser consumers calculated on the selling.

Individuals or businesses that sell tangible personal property to the final consumer are required to remit a 6 sales tax on the total price including shipping and handling charges of their taxable retail sales to the state of michigan. The taxability of various transactions like services and shipping can vary from state to state as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. If a state treats contractors as a reseller you don t pay sales tax when you purchase construction materials. A seller must register for use tax with the department of treasury on line registration is available.

Sales and use tax faqs faqs for sales and use tax sales tax.