Michigan State and Local Tax Updates September 2020

Property owner held liable for delinquent water/sewer charges provided to rental properties

A court ruled that a property owner was liable for delinquent water and sewer charges provided to his rental properties. The late charges then became a lien against the property. The City of Eastpointe improperly transferred the outstanding water changes to tax rolls before the expiration of a statutory six-month period. The city violated this restriction by transferring the charges to plaintiffs’ tax bills less than 60 days after the charges accrued, thus the city’s procedure for entering the lien on the tax roll was unlawful. (Dkt. No. 348642)

Digital signatures allowed on forms, even ones not filed electronically

In an effort to protect health and safety, the Michigan Dept. of Treasury is reminding taxpayers that the use of digital signatures is allowed on forms, even those forms that cannot be filed electronically. The use of digital signatures assists in reducing in-person contact and lessens the risk to taxpayers during the COVID-19 pandemic. Michigan’s individual income tax return; corporate income tax return; and sales, use and withholding tax return already use an electronic signature when filed electronically.

Michigan Dept. of Treasury issues prepaid sales tax rates

October 2020 prepaid sales tax rates on fuel have been issued by the Michigan Dept. of Treasury. For the period Oct. 1, 2020, through Oct. 31, 2020, the prepaid sales tax rate for the purchase of gasoline will decrease to $0.107 per gallon from the Sept. 2020 rate of $0.109 per gallon. Additionally, the prepaid sales tax rate for that same period for the purchase of diesel fuel will decrease to $0.122 per gallon from the Sept. 2020 rate of $0.123 per gallon. The prepayment rates for both gasoline and diesel fuel is set every month by the department.

Michigan approves 2021 certification level requirements

The Michigan State Tax Commission has approved the 2021 certification level requirements for counties, townships and cities. Valuation information was compiled for each township and city within the state, compared against the certification level requirements adopted in the previous year and used to determine the 2021 certification level requirements. The certification level requirement for a county is based on the highest 2021 certification level requirement determined for each of the local units within the county.

Michigan offers state tax assistance for Midland flood victims

State tax assistance is available for taxpayers affected by the Midland area flooding disaster. Individual and business taxpayers who reside in Arenac, Gladwin, Iosco, Midland and Saginaw counties now have additional time to file state tax returns, with penalties and interest waived. The five counties were severely affected by flooding in May, impacting homes, businesses, and public facilities and infrastructure. Affected taxpayers can write to the Michigan Dept. of Treasury to request disaster-related tax relief.

Michigan updates MRE tax payments

The Michigan Dept. of Treasury has updated certain payment information for the Marihuana Retailers Excise (MRE) tax. Specifically, payments of the MRE tax can be made using an e-check or credit card via the Michigan Treasury Online (MTO) website. All cash payments for the MRE must include Form 5677, “Marihuana Retailers Excise Tax Payment Voucher.” If a taxpayer isn’t using the MTO website, be aware that marihuana tax payments are accepted by appointment only between the 17th and 23rd of each month, excluding weekends.


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