Recent Sales and Use Tax Developments
Interstate Motor Carriers. Sales or leases of trucks or trailers which haul goods for others and which travel 10% or more outside the State of Michigan are exempt from sales and use tax. The 10% or more mileage test is based on mileage in the twelve months prior to the sale or lease. A trucker that was not in business in the prior year will not qualify. For this purpose, a truck is a commercial motor vehicle unit with two axles and Gross Vehicle Weight Rate (GVWR) over 10,000 pounds or a commercial motor vehicle with three or more axles. A trailer is one designed to be drawn behind a truck that meets the requirements above. The purchaser/lessee should sign an exemption certificate or indicate in the remarks section of the RD -108: Exempt under P.A. 116.