Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
REQUEST FOR RULEMAKING (RFR)  
1. Department:  
Treasury  
2. Bureau:  
Bureau of Tax and Economic Policy  
3. Promulgation type:  
Full Process  
4. Title of proposed rule set:  
Sales and Use Tax Rules  
5. Rule numbers or rule set range of numbers:  
R 205.1 - R 205.149  
6. Estimated time frame:  
12 months  
Name of person filling out RFR:  
Stewart Binke  
E-mail of person filling out RFR:  
BinkeS@michigan.gov  
Phone number of person filling out RFR:  
517-241-2513  
Address of person filling out RFR:  
430 W. Allegan St., Lansing, MI 48912  
7. Describe the general purpose of these rules, including any problems the changes are intended  
to address.  
The general purpose of the amendments to the rules is to revise, update, rename, rescind and  
create certain Sales and Use Tax Rules.  
8. Please cite the specific promulgation authority for the rules (i.e. department director,  
commission, board, etc.).  
MCL 205.59(2) in the General Sales Tax Act (GSTA) provides that “The department [of treasury]  
shall promulgate rules to implement this act pursuant to the administrative procedures act of 1969,  
1969 PA 306, MCL 24.201 to 24.328,“ and MCL 205.100(2) in the Use Tax Act (UTA) provides  
that “Rules shall be promulgated to implement this act under the administrative procedures act of  
1969, 1969 PA 306, MCL 24.201 to 24.328.” MCL 205.3(b) in the Revenue Act provides further  
authority for Treasury to promulgate rules, stating that “the department may promulgate rules  
consistent with this act in accordance with the administrative procedures act of 1969, 1969 PA  
306, MCL 24.201 to 24.328, necessary to the enforcement of the provisions of tax and other  
revenue measures that are administered by the department."  
A. Please list all applicable statutory references (MCLs, Executive Orders, etc.).  
MCL 205.59(2), MCL 205.100(2) and MCL 205.3(b).  
MCL 24.239  
RFR-Page 2  
B. Are the rules mandated by any applicable constitutional or statutory provision? If so, please  
explain.  
MCL 205.59(2) in the GSTA and MCL 205.100(2) in the UTA direct that Treasury “shall”  
promulgate rules to implement those acts. The use of the term “shall” in a statute infers a  
mandate.  
9. Please describe the extent to which the rules conflict with or duplicate similar rules,  
compliance requirements, or other standards adopted at the state, regional, or federal level.  
The proposed Sales and Use Tax Rules do not conflict with or duplicate similar rules.  
10. Is the subject matter of the rules currently contained in any guideline, handbook, manual,  
instructional bulletin, form with instructions, or operational memoranda?  
The general subject matter of the Sales and Use Tax Rules are discussed in various documents  
published by Treasury.  
11. Are the rules listed on the department’s annual regulatory plan as rules to be processed  
for the current year?  
At the time of the submission of Treasury’s Annual Regulatory Plan, the review by interested  
stakeholders of the Sales and Use Tax Rules was not completed. The expectation in the Annual  
Regulatory Plan at the time was to begin to process the rules in the current year.  
12. Will the proposed rules be promulgated under Section 44 of the Administrative Procedures  
Act, 1969 PA 306, MCL 24.244, or under the full rulemaking process?  
Full Process  
13. Please describe the extent to which the rules exceed similar regulations, compliance  
requirements, or other standards adopted at the state, regional, or federal level.  
No federal or regional compliance requirements or other standards exist concerning the  
administration of the Michigan general sales tax and use tax, which is the subject matter of these  
rules.  
14. Do the rules incorporate the recommendations received from the public regarding any  
complaints or comments regarding the rules? If yes, please explain.  
The rules were presented to several external stakeholders representing affected parties for review  
and comment. The rules incorporate responses to comments and recommendations received from  
these external stakeholders.  
15. If amending an existing rule set, please provide the date of the last evaluation of the rules  
and the degree, if any, to which technology, economic conditions, or other factors have changed  
the regulatory activity covered by the rules since the last evaluation.  
The last general evaluation of the rules occurred in 2013, during which a few of the rules in the  
existing rule set were revised. The regulatory activity covered by the rules has not been impacted  
recently by technology or economic conditions.  
16. Are there any changes or developments since implementation that demonstrate there is no  
continued need for the rules, or any portion of the rules?  
No, the need for the Sales and Use Tax Rules is ongoing. However, rules that were deemed to be  
outdated or in need of revision as a result of changes in the statutes or judicial decisions are  
reflected in the proposed rules.  
17. Is there an applicable decision record (as defined in MCL 24.203(6) and required by MCL  
24.239(2))? If so, please attach the decision record.  
No  
MCL 24.239  
;