Michigan Office of Administrative Hearings and Rules  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Treasury  
Division/Bureau/Office:  
Bureau of Tax and Economic Policy  
Name of person completing this form:  
David Matelski  
Phone number of person completing this form:  
517-335-7424  
E-mail of person completing this form:  
MatelskiD@michigan.gov  
Name of Department Regulatory Affairs Officer reviewing this form:  
Margaret Patterson  
2. Rule Set Information  
MOAHR assigned rule set number:  
2020-19 TY  
Title of proposed rule set:  
Specific Sales and Use Tax Rules  
3. Purpose for the proposed rules and background:  
Michigan is a member of the Streamlined Sales and Use Tax Agreement (SSUTA). Under the terms  
of the SSUTA, if a member state’s sales/use tax acts or rules use a word or phrase that is defined in  
the SSUTA’s Library of Definitions that state must also define that word or phrase using the SSUTA  
definition in its statute or rules in “substantially the same language.” See SSUTA Article III, Section  
327. Michigan uses the phrase “bottled water” in the General Sales Tax Act (GSTA), the Use Tax Act  
(UTA), and the Specific Sales and Use Tax Rules without providing any definition of the phrase in  
either act or the Specific Sales and Use Tax Rules. See MCL 205.54d(d), MCL 205.94(1)(q), and  
Mich Admin Code R 205.127, respectively. Therefore, Michigan is likely out of compliance with the  
SSUTA on this issue, and absent a correction, Treasury will be required to self-report this potential  
compliance issue when it files its annual Certificate of Compliance in August 2020. Michigan can  
correct this issue by adopting the SSUTA’s definition of “bottled water” in its statute or rules. Once  
properly promulgated, this rule will prevent Michigan from being found out of compliance and facing  
sanctions.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
4. Summary of proposed rules:  
Michigan is a member of the Streamlined Sales and Use Tax Agreement (SSUTA). Under the terms  
of the SSUTA, if a member state’s sales/use tax rules use a word or phrase that is defined in the  
SSUTA’s Library of Definitions that state must also define that word or phrase using the SSUTA  
definition in its rules. See SSUTA Article III, Section 327. Michigan uses the phrase “bottled water”  
in R 205.127, MCL 205.54d, and MCL 205.94 without providing a definition of the phrase. Michigan  
can correct this possible noncompliance with SSUTA by adding the SSUTA definition of “bottled  
water” to R 205.127. The amendment to the rule will also provide clarity to businesses and persons  
regarding what constitutes non-taxable bottled water.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
The Mining Journal, The Grand Rapids Press, The Oakland Press. The Notice of Public Hearing was  
published in all 3 newspapers on June 22, 2020.  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
7/1/2020  
7. Date, time, and location of public hearing:  
7/8/2020 01:00 PM at State Treasurer's Board Room , Richard H. Austin Building, 430 West Allegan  
Street, Lansing, Michigan 48922  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=147  
9. List of the name and title of agency representative(s) attending public hearing:  
David Matelski, Administrative Law Specialist, Bureau of Tax Policy, Tax Policy Division.  
10. Persons submitting comments of support:  
No persons participated in the public hearing held virtually via Microsoft Teams. No persons  
submitted written comments by mail, facsimile or electronically.  
11. Persons submitting comments of opposition:  
No persons participated in the public hearing held virtually via Microsoft Teams. No persons  
submitted written comments by mail, facsimile, or electronically.  
12. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
Name &  
Organization public hearing  
Comments made at Written  
Comments  
Agency Rationale Rule number  
for change  
& citation  
changed  
1
No persons  
attended.  
None  
No changes made. None  
13.Date report completed:  
7/16/2020  
MCL 24.242 and 24.245  
;