Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Michigan, sales tax is a mandatory tax that is imposed on the sale of most goods and some services. The state sales tax rate is 6%, which applies to the retail sale of tangible personal property as well as certain services. Michigan does not allow cities or other local jurisdictions to add their own sales tax on top of the state rate, which means the total sales tax rate remains consistent across the entire state. The tax is collected by businesses at the point of sale and then remitted to the Michigan Department of Treasury. Certain items may be exempt from sales tax, such as prescription drugs and groceries. It's important for businesses operating in Michigan to understand their obligations regarding the collection and remittance of sales tax to ensure compliance with state laws.