Sales tax-free delivery and installation in Michigan 2023

The measure that will remove delivery and installation fees from the state’s sales tax was signed into law by Governor Gretchen Whitmer.

A significant number of retailers did not already apply the 6% sales tax to the price of shipping or installation. This new piece of legislation makes certain that neither of these costs is subject to taxation in Michigan so long as they are itemized individually on the purchase receipt.

This results in a reduction in the tax burden placed on consumers and smaller enterprises.

According to calculations provided by the Senate Fiscal Agency, the removal of sales taxes on delivery and installation will result in annual savings for taxpayers of approximately $70 million.

Those who are in favor of the bill believe that delivery and installation fees should be regarded in the same manner. They have high hopes that the laws will be beneficial to the success of small businesses.

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