Michigan - Sales Tax Exemption Revoked - Labs Qualify for Industrial Processing Exemption

Travis

Travis

Nothing to see here
Staff member
Messages
7,224
Reaction score
323
The Michigan Department of Treasury is requiring that Dental Labs collect and remit sales tax beginning July 1, 2017. However, on the upside, since the labs sale of dental restorations will now be considered by the Michigan Department of Treasury as a “sale at retail”, dental labs may now claim the industrial processing exemption for qualifying supplies, materials and equipment. For Michigan labs, any purchases of qualifying supplies or equipment that were planned for this week should be deferred until after July 1st so that the lab does not have to pay sales tax on those purchases.

Michigan labs will have to register to collect and remit sales tax and also complete a form to take advantage of the industrial processing exemption on qualifying supplies, materials and equipment.

More information regarding Sales Tax is available at 517-636-6925 and in the business tax registration booklet: https://www.michigan.gov/documents/518_3620_7.pdf

Some links to Industrial Processing Exemption information and forms:

http://www.michigan.gov/taxes/0,4676,7-238-43519_43529-155524--,00.html

http://www.michigan.gov/documents/taxes/3372_216612_7.pdf

Other helpful links:

State and Local Taxes Weekly

http://nadl.org?i46wmt

205.54t Exemptions; limitation; industrial processing; definitions.

http://www.legislature.mi.gov/(S(e1...eg.aspx?page=GetObject&objectname=mcl-205-54t

Continue reading...
 
sndmn2

sndmn2

Well-Known Member
Full Member
Messages
1,025
Reaction score
166
I have not heard anything on this. Anyone from Mich. want to chime in ?
 
Doris A

Doris A

Well-Known Member
Donator
Full Member
Messages
5,069
Solutions
1
Reaction score
1,033
Well when one state starts it, it won't be long before the others follow suit!
 
doug

doug

Well-Known Member
Full Member
Messages
2,657
Reaction score
375
Bennett Napier addressed this on FB.
 
doug

doug

Well-Known Member
Full Member
Messages
2,657
Reaction score
375
*** Must Know Info for Michigan Labs *** The Michigan Department of Treasury is requiring that Dental Labs collect and remit sales tax beginning July 1, 2017. However, on the upside, since the labs sale of dental restorations will now be considered by the Michigan Department of Treasury as a “sale at retail”, dental labs may now claim the industrial processing exemption for qualifying supplies, materials and equipment. For Michigan labs, any purchases of qualifying supplies or equipment that were planned for this week should be deferred until after July 1st so that the lab does not have to pay sales tax on those purchases.

Michigan labs will have to register to collect and remit sales tax and also complete a form to take advantage of the industrial processing exemption on qualifying supplies, materials and equipment.

More information regarding Sales Tax is available at 517-636-6925 and in the business tax registration booklet: https://www.michigan.gov/documents/518_3620_7.pdf

Some links to Industrial Processing Exemption information and forms:
http://www.michigan.gov/…/0,4676,7-238-43519_43529-155524--…
http://www.michigan.gov/documents/taxes/3372_216612_7.pdf

Another helpful link:
205.54t Exemptions; limitation; industrial processing; definitions.
http://www.legislature.mi.gov/(S(e1mtixa3yj03xfcxlikpnc1e))/mileg.aspx?page=GetObject&objectname=mcl-205-54t
 

Fogember

Member
Full Member
Messages
48
Reaction score
16
I'm in Michigan and this is the first I have heard about this. My accountant is up to date on things and he has not said anything. I think there is some misinterpretation of the "law?"
 
J

John C

Active Member
Full Member
Messages
151
Reaction score
20
In California we have been collecting sales tax and paying it in for as long as i can remember. Its a pain. We collect but get nothing out of it. I think we should get a percentage for collecting.
 
pinkwilson

pinkwilson

Member
Full Member
Messages
8
Reaction score
5
I just contacted my accountant about this and she has not been updated either. I was informed by my supply vendor in Ohio, last week on June 28. I would have enjoyed a little bit more time to react and set up, like something longer than 3 days. I don't mind the taxes so much, but this is just rude.
 
V

Vicki

Member
Full Member
Messages
6
Reaction score
0
I just called the State of Michigan Sales and Use department. I was told that the sales tax applies to all that goes into making a prosthetic device... I further questioned "even the delivery charge?" And was told yes. Everything we charge a dentist. They were very helpful and curious how we heard about it. They have received many phone calls already.. thank you to the MACDL and the NADL! Would hate to have learned about this December 31, 2017!


Sent from my iPhone using Tapatalk
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
I just called the State of Michigan Sales and Use department. I was told that the sales tax applies to all that goes into making a prosthetic device... I further questioned "even the delivery charge?" And was told yes. Everything we charge a dentist. They were very helpful and curious how we heard about it. They have received many phone calls already.. thank you to the MACDL and the NADL! Would hate to have learned about this December 31, 2017!


Sent from my iPhone using Tapatalk
only prosthetics? not restorative? or are they lumping the two into the same group
 
doug

doug

Well-Known Member
Full Member
Messages
2,657
Reaction score
375
Who in this thread is not a member of their sate component or the NADL. This information is part of what they do for you.
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
Who in this thread is not a member of their sate component or the NADL. This information is part of what they do for you.
i am not a member of NADL. they hardly represent laboratories. and if they do, they do a piss poor job of it.
 
sndmn2

sndmn2

Well-Known Member
Full Member
Messages
1,025
Reaction score
166
... What about lab to lab work? I do piece work for a couple labs. Do I have to charge him the tax ?
 
2thm8kr

2thm8kr

Beanosavedmysociallife
Full Member
Messages
11,304
Reaction score
2,510
How would you know if you aren't a member?
How about the recent 'unskilled labor' debacle? Shouldn't they have headed that off at the pass if they are really representing US labs?
They should be proactive on that stuff rather than reactionary. Maybe if they didn't publish so many photos of awards banquets....
 
Last edited:
doug

doug

Well-Known Member
Full Member
Messages
2,657
Reaction score
375
I reached out to Bennett Napier who is the Association Director for the FDLA and NADL.

Here is his comment and an attached bit of information.

It is important to clear up misinformation relative to government classifications on occupations including dental laboratory technicians.


No government agency including the U.S. Department of Labor uses skilled vs. unskilled terminology or classifications. Unfortunately, when the U.S. Department of Labor changed the system for classifying all occupations a few years ago, there were several trade press articles in the dental laboratory industry that used that terminology as a descriptor to discuss the change in the system.
 

Attachments

  • NADL-info.pdf
    1.8 MB · Views: 9
Top Bottom