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Article: Michigan sales tax does not apply to property sold incidental to a service.
- Article from:
- Tax Executive
- Article date:
- July 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Tax Executives Institute, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As the economy is transformed from one in which sales in goods becomes less predominant and the rendering of services proliferates, a recent decision by the Michigan Supreme Court deserves the attention to today's tax ex ecutive. With increasing frequency, transactions between a business and its customers involves both a service component and the transfer of tangible personal property. The courts have grappled with a standard by which to determine whether the transaction should be considered a sale of personal property or the rendition of the service. The consequence of this determination is that, if a sale of personal property is involved, the transaction may be subject ...
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