Michigan Sales Tax on Leases and Rentals Michigan: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Michigan's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Michigan, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Michigan.

Motor Vehicles
In the state of Michigan, they will be considered to be subject to use tax.

Tangible Media Property
In the state of Michigan, it must be noted that the lessor may choose to pay use tax on rentals or lease receipts instead of payment of sales and use taxes on the cost of the property upon acquisition.

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Source: http://www.salestaxhandbook.com/michigan/sales-tax-taxability/leases-and-rentals