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MICHIGAN SALES AND USE TAX EXEMPTION FOR PERSONAL PROTECTIVE EQUIPMENT

MICHIGAN SALES AND USE TAX EXEMPTION FOR PERSONAL PROTECTIVE EQUIPMENT

Recently, the Michigan Treasury announced that personal protective equipment (PPE) purchases would be exempt from sales and use tax under an industrial processing exemption. In order to qualify, three requirements need to be met:

  • the equipment must be purchased by the industrial processor,
  • the equipment is used to protect the safety of the employees, and
  • the equipment is used in an industrial processing activity.

However, the exemption is limited to how much is used for the exempt purpose. For instance, if PPE and safety equipment are split between industrial and non-industrial, then the exemption is limited by the percent used in the industrial activity.

 

12/04/2020

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