Tangible Personal Property Sold to Inmates No Longer Exempt from Tax in Michigan

Thursday, May 10th, 2012

 
 
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Michigan
General

By enacting House Bill No. 4658, Michigan has eliminated its sales tax exemption for tangible personal property purchased by inmates in a penal or correctional institution. 2012 Mich. Acts No. 126. Previously, inmates were able to purchase items free from tax with prison scrip or its equivalent issued and redeemed by the institution. See Mich. Comp. Laws Ann. sec. 205.54a(4a)(1)(j).

Governor Rick Snyder signed the bill into law on May 8; it will take effect on October 1, 2012. At that time, the exemption will no longer apply, so inmates will then have to start paying sales tax on their purchases of taxable tangible personal property.


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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