Michigan—Sales and Use Tax: Personal Protective Equipment Qualifies for Industrial Processing Exemption

Michigan – Sales and Use Tax: Personal Protective Equipment Qualifies for Industrial Processing Exempt

PPE or safety equipment purchased by a person eligible for the industrial processing exemption is exempt from Michigan sales and use tax if used or consumed in an exempt industrial processing activity.

Industrial Processing Exemption

PPE or safety equipment is eligible for exemption if it meets the following criteria:

  • is purchased by the industrial processor or another person engaged in an industrial processing activity on behalf of an industrial processor, including purchases made directly by an employee of an industrial processor;
  • is used for the safety of employees or other authorized personnel; and
  • is used in an industrial processing activity.

If PPE or safety equipment is used for both an exempt and nonexempt activity, the exemption must be apportioned based on the percentage of exempt use to total use determined by a reasonable formula approved by the Department of Treasury.

Revenue Administrative Bulletin 2020-9, Michigan Department of Treasury, July 20, 2020

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