Does Michigan Charge State Sales Tax On Carpet Installation

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.

Does michigan charge state sales tax on carpet installation.

Sales use tax installation of flooring products e g carpet tile etc. For example you sell water heaters and charge for installation. When a single delivery contains both taxable and exempt goods taxability is determined by the following. Instead you ll need to charge sales tax to the customer as appropriate either by factoring it into your lump sum price or adding it to each line item as appropriate for a time and materials approach.

Sales and use tax faqs faqs for sales and use tax sales tax. Tax if we do not provide the installation i e we simply hand over the goods. A seller must collect michigan 6 use tax from michigan purchaser consumers calculated on the selling. Michigan does not tax the delivery or installation of tax exempt goods.

Some states like california only tax some services. A percentage based on the total sales price of the taxable property compared to the total sales price of all property in the delivery. If a state treats contractors as a reseller you don t pay sales tax when you purchase construction materials. A house hotel office building.

Tax if we do not attach the carpet or pad with glue nails etc. Since the installation charge is tied to the sale of the water heater the installation charge although service based is. Sales tax sometimes applies. Services that are inseparable from the sale of a product are taxable.

Not taxable if done in a permanent structure e g.