Michigan Sales Tax on Optional Maintenance Contracts Michigan: Sales Tax Handbook

Michigan:

Are Optional Maintenance Contracts 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 optional maintenance contracts in Michigan, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Michigan.


General Optional Maintenance Contracts
EXEMPT
In the state of Michigan, the charge must be separately stated.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts
TAXABLE
Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Michigan.



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Source: http://www.salestaxhandbook.com/michigan/sales-tax-taxability/optional-maintenance-contracts