Michigan Provides Guidance on Which Items Are Real Property

Wednesday, February 10th, 2016

Michigan Department of Revenue

The Michigan Department of Treasury released a bulletin on when personal property becomes a real property fixture for sales tax purposes.

Michigan taxes real property fixtures differently than personal property. The Department looks at three things to decide whether an item is personal property or a fixture. The things are (1) whether the property is annexed to real estate, (2) whether the property functions as part of the real estate or is a useful part of real estate, and (3) whether there is an intent that the property become a permanent part of the real estate.

The bulletin gives examples of items that become real property fixtures and items that stay personal property. For example, a portable air compressor is personal property, but an air compressor attached to the central building system is a fixture. The bulletin also discusses whether greenhouses, grain storage bins, modular homes, methane producing landfill cells, and wooden pole-mounted outdoor warning sirens are real property fixtures.


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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.

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