On May 14, 2024, the Michigan Department of Treasury issued Revenue Administrative Bulletin (RAB) 2024-7 – Sales and Use Tax – Industrial Processing, to replace RAB 2000-4. RAB 2024-7 is retroactive to all periods that are open under the statute of limitations. RAB 2024-7 incorporates legislative changes and legal principles from binding precedent decided after the issuance of RAB 2000-4. This new RAB provides an updated definition of industrial processing to include:
Affixing tangible personal property to a structural part of real estate in another state or for the exempt purposes described in MCL 205.54t or MCL 205.94, and
Processing of aggregate materials.
The bulletin also provides updated examples of persons that can claim the exemption, activities & property eligible for the exemption, and examples of activities & property that are not eligible for the exemption.
This bulletin does not replace other RABs that address the industrial processing exemption as applied to a particular industry or item of tangible personal property.
For more information about this topic, please contact Gary Schleinkofer at 260-969-2576 or gschleinkofer@badentax.com