Regulatory Rundown: April/May 2024 Michigan Retailer

Regulatory News & Trends

ICYMI – Period clothing exempt from sales tax

The Michigan Department of Treasury plans to release an interpretive statement soon that period clothing falls within the feminine hygiene products sales tax exemption, making those products – specifically, period underwear, period swimwear, and similar items – exempt from the state’s sales and use taxes. Since this is an interpretation of current law, it is applicable going back to the start of the feminine hygiene products exemption (Feb. 3, 2022). 

Retailers that collect sales tax on nontaxable items aren’t required to refund those amounts to their customers so long as they remit the sales tax to the state. Ultimately, that decision is a matter of customer service and compliance burden. See RAB 2023-24, Sales and Use Tax Refund Procedures for more detail. 

CORRECTION: Firearm safety devices exempt from sales tax May 13-Dec. 31, 2024

Public Acts 14-15 of 2023 temporarily exempts firearm safety devices including gun locks, gun safes, ear and eye protection from the state’s six percent sales and use taxes through Dec. 31, 2024. These items must be marked as nontaxable starting May 13 through the remainder of 2024. They will be taxable again starting Jan. 1, 2025.

Learn more about the Public Acts.

Spring Black Friday

A recent Numerator survey on Spring Black Friday intentions asked DIY, BBQ, & Gardening enthusiast shoppers their 2024 shopping intentions. Forty-five percent intend to make a purchase this year and are most likely to find deals through social media or online ads. Gardening and landscape supplies are the most sought-after items (70% plan to purchase) as the weather warms up followed by outdoor décor (58%), outdoor power equipment (30%), patio furniture (30%), and storage solutions (27%).

ICYMI – Small businesses eligible for federal funding 

Forty-two Michigan counties are eligible to apply for federal funding from the Small Business Administration (SBA) following the warm weather and economic impact from lack of snow. 

SBA Economic Injury Disaster Loans are designed to help businesses through disaster situations that have impacted their economic well-being. Loans are up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period.

Read the press release. 

Deadlines and Reminders

May-June 2024

• May 15 – Michigan Annual Report Due – Profit and Professional Service Corporations.
• June 1 (on or before) – Bottle Deposit Fund Reimbursement Due – Form 2196.
• Mid-June – Lottery licenses mailed

Monthly Reminders:

• Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
• Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
• Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.

Quarterly Reminders:

• Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).
• Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
• Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).