Get MI 5081 Instruction 2021-2024

Form 5081 2016 Sales Use and Withholding Taxes Annual Return IMPORTANT This is a return for Sales Tax Use Tax and Withholding Tax. If the taxpayer inserts a zero on or leaves blank any line for reporting Sales Tax Use Tax or Withholding Tax the taxpayer is certifying that no tax is owed for that tax type. If it is determined that tax is owed the taxpayer will be liable for the deficiency as well as penalty and interest. Check the applicable boxes to indicate which taxes you will be reporting on the return* PART 1 SALES AND USE TAX SECTION Sales Tax Line 1 Document total gross sales for tax year being reported* Any costs incurred before ownership of the property is transferred to the buyer including shipping handling and delivery charges are not considered services and are subject to tax. Line 2 Use lines 2a 2l to deduct nontaxable sales you made from gross sales that are taxed at the 6 tax rate. Deductions taken for tax exempt sales must be substantiated in your records. You must obtain a completed copy of Form 3372 or the same information in another format from the purchaser. Line 2a Resale. Enter sales which will be resold to others. Line 2b Industrial Processing* The property sold must be for direct use in producing a product for eventual sale at retail or to be affixed to and made a structural part of real estate located in another state. Line 2c Agriculture Production* The property sold must be for direct use in agricultural production* Line 2d Interstate Commerce. Enter sales made in interstate commerce. To claim such a deduction the property or service must be delivered by you to the out-of-state purchaser. Property transported out of state by the purchaser does not qualify under interstate commerce. You must keep documentation of shipment out-of-state to support this deduction* Line 2e Exempt Services. Enter charges for nontaxable services billed separately such as repair or maintenance if these charges were included in gross receipts on line 1. Any costs incurred before Line 2f Bad Debt. You may deduct the amount of bad debts from your proceeds if the debts are charged off as uncollectible on your books and records at the time the debts become worthless and you have deducted the debts on your return for a period during which the bad debts are written off as uncollectible. The debt must also be eligible to be deducted for federal income tax purposes. A bad debt deduction may be claimed by a third-party lender provided the retailer who reported the tax and the lender financing the sale executed and maintained a written election designating which party may claim the deduction* Certain additional conditions must be met. See MCL 205. 54g and MCL 205. 94d for more information* Line 2g Food for Human/Home Consumption* Enter total of retail sales of grocery-type food excluding tobacco and alcoholic beverages. Prepared food is subject to tax. See MCL 205. 54g and MCL 205. 94d for more information* Line 2h Government Exemption* Enter direct sales to the United States Government State of Michigan or its political subdivisions.