Michigan Sales Tax On Software Maintenance -
When claiming an exemption, ensure Michigan Form 3372 (Sales and Use Tax Certificate of Exemption) is correctly executed.
Specific charges for technical support or for adapting prewritten software to a user's needs are exempt if they are separately stated and identified on the invoice. Michigan Sales Tax On Software Maintenance
In Michigan , the taxability of software maintenance agreements depends heavily on whether the contract is or optional , and the nature of the software it supports. Key Taxability Rules for Maintenance When claiming an exemption, ensure Michigan Form 3372
Maintenance contracts for custom software (designed for a specific user's needs) are generally considered non-taxable services. Critical Factors and Exemptions Learn more Michigan Sales Tax on Software and
AI responses may include mistakes. For financial advice, consult a professional. Learn more Michigan Sales Tax on Software and Digital Products
Software delivered via physical media or downloaded in full is taxable as tangible property. Conversely, Software as a Service (SaaS) accessed purely via a web browser (with no downloaded code) is typically exempt .
Michigan's 6% sales and use tax applies to "tangible personal property," which the state defines to include (canned) computer software. Maintenance agreements follow these specific triggers: