Michigan Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Michigan Sales and Use Tax Applicable to Registration

 

6% on the full purchase price of the vehicle. Use tax collected on vehicle purchased out-of-state and on private sales unless the new owner is an immediate relative of the seller. Sales tax paid to the Michigan dealer who in turn submits the Title Application and fees to the Department of State. Individual transactions and fees are submitted directly to Department of State branch offices. A vehicle from another state or county is taxable if it was not titled by the purchaser in the state of purchase or if tax was paid to a state not reciprocal with Michigan. Sales tax is collected with 14-day in-transit permit when the vehicle is purchased from a Michigan dealer and will be taken to a state RECIPROCAL with Michigan. NO TAX is collected in Michigan on vehicles purchased from an individual being taken out-of-state with a 14-day in-transit permit. Vehicles brought into Michigan by military personnel are taxed unless sales tax (any percentage) was paid by the military person in the state where purchased.

 

Prerequisite to titling and registration. Applies to motor vehicles, trailers, watercraft, and recreational vehicles. Michigan has sales and use tax reciprocity with all states EXCEPT: AK, AR, DE, DC, MD, MS, MT, NE, NH, NC, NM, OK, OR, and WV. Michigan assesses tax on the full purchase price before any trade-in. Credit is given for tax paid in a reciprocal state. If vehicle ownership transfers without a selling price (e.g., vehicle trade) then 6% use tax is assessed on the vehicle’s retail dollar value as listed in any currently recognized appraisal guide.