Michigan Provides Guidance on Which Items Are Real Property

Wednesday, February 10th, 2016

 
 
Michigan Department of Revenue
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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.

http://www.michigan.gov/documents/treasury/RAB2016-4_513222_7.pdf


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