IPCPR Legislative | Michigan

Michigan

michigan

Michigan State Contact Information

Michigan Department of Treasury
Tobacco Tax Unit
(517) 636-4630
treas_tobaccotaxes@michigan.gov

Michigan Department of State
(888) 767-6424
Submit a question or comment: http://www.michigan.gov/sos/0,4670,7-127-13162-25634–,00.html

Taxation in Michigan

Michigan imposes a tobacco products tax on the consumer of tobacco products by requiring the consumer to pay the tax at the time of purchase.

 

Mich. Comp. Laws § 205.427a: Imposition of tax on consumer; intent of act.

 

A city, township, village, county, other local unit of government, or political subdivision of Michigan may not impose any new requirement or prohibition pertaining to the sale or licensure of tobacco products for distribution purposes.

 

Mich. Comp. Laws § 205.434: Requirements or prohibitions imposed by local units of government.

 

Staff reported that Michigan localities do not levy additional taxes on tobacco products.

The tax on cigars, non-cigarette smoking tobacco, and smokeless tobacco is 32% of the wholesale price, except that, through October 31, 2021, the amount of tax levied on cigars may not exceed $0.50 per individual cigar.

 

Mich. Comp. Laws § 205.427: Levy of tax on sale of tobacco products.

Licensed wholesalers of tobacco products must file a monthly Michigan Wholesalers Other Tobacco Products Tax Return (Form 4244), the accompanying schedules, and payment for any taxes due on or before the 20th of each month, even if no tax is due.

 

Licensed unclassified acquirers of tobacco products must file a monthly Michigan Unclassified Acquirers Other Tobacco Products Tax Return (Form 4245), the accompanying schedules, and payment for any taxes due on or before the 20th of each month, even if no tax is due.

 

Mich. Comp. Laws § 205.427(2): Filing return; payment of tax.

Michigan Department of Treasury: Tobacco Tax Forms & Schedules
http://www.michigan.gov/taxes/0,4676,7-238-44079-155886–,00.html

 

Form 4244: Michigan Wholesalers Other Tobacco Product Tax Return
http://www.michigan.gov/documents/treasury/4244_175523_7.pdf

 

Form T-115: Schedule of Other Tobacco Products Sold to Michigan Tribes
http://www.michigan.gov/documents/4255_115220_7.pdf

 

Form 4245: Michigan Unclassified Acquirers Other Tobacco Product Tax Return
http://www.michigan.gov/documents/treasury/4245_175522_7.pdf

 

Form T-101: Schedule of Other Tobacco Products Purchases
http://www.michigan.gov/documents/4259_115224_7.pdf

 

Form T-102: Schedule of Other Tobacco Products Credits
http://www.michigan.gov/documents/4258_115223_7.pdf

 

Form T-103: Schedule of Out-of-State Other Tobacco Products
http://www.michigan.gov/documents/4257_115222_7.pdf

 

Form T-108: Schedule of Other Tobacco Products Sales
http://www.michigan.gov/documents/4256_115221_7.pdf

Definitions in Michigan

 

“Smoking” or “smoke” means the burning of a lighted cigar, cigarette, pipe, or any other matter or substance that contains a tobacco product.

 

Mich. Comp. Laws § 333.12601(r)

 

A “cigar” is a roll of tobacco weighing 3 or more pounds per 1,000, which roll has a wrapper or cover consisting only of tobacco.

 

Mich. Comp. Laws § 333.12601(c)

 

“Tobacco product” means cigarettes, cigars, noncigarette smoking tobacco, or smokeless tobacco.

 

Mich. Comp. Laws § 205.422(w)

 

“Smokeless tobacco” means snuff, chewing tobacco, and any other tobacco that is intended to be consumed by means other than smoking.

 

Mich. Comp. Laws § 205.422(t)

 

A “retailer” is a person other than a transportation company who operates a place of business for the purpose of making sales of a tobacco product at retail.

 

Mich. Comp. Laws § 205.422(q)

 

A “transportation company” is a person operating, or supplying to common carriers, cars, boats, or other vehicles for the transportation or accommodation of passengers and engaged in the sale of a tobacco product at retail.

 

Mich. Comp. Laws § 205.422(x)

 

A “wholesaler” is a person who purchases all or part of his or her tobacco products from a manufacturer, who sells 75% or more of those tobacco products to others for resale, and who maintains an established business where substantially all of the business is the sale of tobacco products or cigarettes and related merchandise at wholesale and where at all times a substantial stock of tobacco products and related merchandise is available to retailers for resale. “Wholesaler” includes a chain of stores retailing a tobacco product to the consumer if 75% of its stock of tobacco products is purchased directly from the manufacturer.

 

Mich. Comp. Laws § 205.422(cc)

 

A “secondary wholesaler” is a person who sells a tobacco product for resale, who purchases a tobacco product from a wholesaler or unclassified acquirer licensed under this act, and who maintains an established place of business in Michigan where a substantial portion of the business is the sale of tobacco products and related merchandise at wholesale, and where at all times a substantial stock of tobacco products and related merchandise is available to retailers for resale.

 

Mich. Comp. Laws § 205.422(s)

 

A “transporter” is a person importing or transporting into Michigan, or transporting in Michigan, a tobacco product obtained from a source located outside the state, or from any person not duly licensed under this act. Transporter does not include an interstate commerce carrier licensed by the interstate commerce commission to carry commodities in interstate commerce, or a licensee maintaining a warehouse or place of business outside of the state if the warehouse or place of business is licensed under this act.

 

Mich. Comp. Laws § 205.422(y)

 

An “unclassified acquirer” is a person, except a transportation company or a purchaser at retail from a retailer licensed under the general sales tax act, who imports or acquires a tobacco product from a source other than a wholesaler or secondary wholesaler licensed under this act for use, sale, or distribution. “Unclassified acquirer” also includes a person who receives cigars, noncigarette smoking tobacco, or smokeless tobacco directly from a manufacturer licensed under this act or from another source outside this state, which source is not licensed under this act. An unclassified acquirer does not include a wholesaler.

 

Mich. Comp. Laws § 205.422(z)

 

The “wholesale price” is the actual price paid for a tobacco product, including any tax, by a wholesaler or unclassified acquirer to a manufacturer, excluding any discounts or reductions.

 

Mich. Comp. Laws § 205.422(bb)

 

A “sale” is a transaction by which the ownership of tangible personal property is transferred for consideration, and the term also applies to use, gifts, exchanges, barters, and thefts.

 

Mich. Comp. Laws § 205.422(r)

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