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A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken
by the agency to avoid or minimize duplication.
The rules have not been coordinated with other federal, state, and local laws because there are no other federal, state,
or local laws applicable to the same activity or subject matter of these proposed rules.
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated
standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more
stringent rules.
There are no federal rules or applicable industry standards.
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,
provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the
specific facts that establish the clear and convincing need to adopt the more stringent rules.
There are no federal rules or applicable industry standards.
Purpose and Objectives of the Rule(s)
6. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.
Amending the rules will provide express guidance to taxpayers, trades, and industries on the various sales and
purchase transactions parties may enter into regularly each day in order to facilitate compliance with applicable
statutes. These rules are not designed to alter such parties’ behavior or the frequency of such behavior, except where
such behavior is not in compliance with the applicable statutes.
A. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.
There is no estimated change in the frequency of sales and purchase transactions expected from the proposed and
amended rules. Taxpayers and affected industries and trades are expected to benefit from the clarifications.
B. Describe the difference between current behavior/practice and desired behavior/practice.
There is no difference between current behavior/practice and desired behavior/practice, other than providing greater
clarity to taxpayers, trades, and industries in the taxability of their sales and purchase transactions and thus facilitating
greater compliance with the sales and use tax statutes.
C. What is the desired outcome?
The desired outcome is to provide greater clarity to taxpayers, trades, and industries on the taxability of their sales and
purchase transactions, facilitating greater compliance with the sales and use tax statutes.
7. Identify the harm resulting from the behavior that the proposed rules are designed to alter and the likelihood
that the harm will occur in the absence of the rule.
There is no harm that results from the behavior that the proposed rules are designed to alter, and no harm will occur in
the absence of the rules.
A. What is the rationale for changing the rules instead of leaving them as currently written?
The rationale for changing the rules instead of leaving them as currently written is to clarify and incorporate changes
in law resulting from statutory amendments to the sales and use tax acts, MCL 205.51-205.78 and 205.91-205.111,
respectively, case law interpreting such acts, and the enactment of the streamlined sales and use tax revenue
equalization act, MCL 205.171-205.191.
8. Describe how the proposed rules protect the health, safety, and welfare of Michigan citizens while promoting a
regulatory environment in Michigan that is the least burdensome alternative for those required to comply.
The proposed rules provide greater clarity on the taxability of sales and purchase transactions under the sales and use
tax statutes, facilitating compliance with the statutes, securing the collection of appropriate tax revenues under the law,
and reducing potential deficiencies of tax and imposition of penalty.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
R 205.8, R 205.52, R 205.56, R 205.57, R 205.58, R 205.60, R 205.63, R 205.64, R 205.66, R 205.72, R 205.73, R
205.75, R 205.78, R 205.81, R 205.83, R 205.84, R 205.89, R 205.90, R 205.91, R 205.92, R 205.97, R 205.99, R
205.100, R 205.101, R 205.102, R 205.106, R 205.107, R 205.110, R 205.113, R 205.114, R 205.115, R 205.116, R
205.117, R 205.118, R 205.119, R 205.124, R 205.126, R 205.130, R 205.131, R 205.133, R 205.134, R 205.135, and
R 205.139 are rescinded.
MCL 24.245(3)